Asian session: The yen dropped against all its 16 major peers

---

The yen dropped against all its 16 major peers after Kyodo News reported, without citing anyone, that Japan’s government plans to pledge to “promptly” start a study on cutting the effective corporate tax rate.

The U.S. currency also strengthened before a report forecast to show the world’s largest economy expanded at a quicker pace than initially estimated in the second quarter. U.S. gross domestic product expanded an annualized 2.6 percent in the second quarter, according to the median estimate of analysts polled by Bloomberg News before today’s report, compared to an earlier reading of 2.5 percent.

Applications for unemployment benefits in the U.S. probably climbed to 325,000 in the week ended Sept. 21 from 309,000 in the previous period, according to the median forecast of economists surveyed by Bloomberg before today’s report. The figure dropped in the week through Sept. 7 to the lowest level since 2006 due to computer-system changeovers by California and Nevada employment agencies.

U.S. Treasury Secretary Jacob J. Lew stepped up pressure on Congress to avert a potential default, telling lawmakers in a letter yesterday that measures to avoid breaching the debt ceiling will be exhausted on Oct. 17. The federal spending authority runs out in four days.

EUR / USD: during the Asian session the pair traded in the range of $ 1.3510-25

GBP / USD: during the Asian session, the pair traded in the range of $ 1.6065-85

USD / JPY: during the Asian session the pair rose to Y99.10

Focus turns to release of Q2 UK and US GDP data for added direction.