Foreign exchange market. Asian session: the yen advanced

Economic calendar (GMT0):

Time/ Region/ Event/ Period/ Previous/ Forecast/ Actual

00:30 Australia Construction Work Done Quarter III 2.1% Revised From 1.6% -2.1% -3.6%

07:00 Switzerland UBS Consumption Indicator October 1.65 1.6

The yen rose against the U.S. dollar on demand for safe-haven assets amid geopolitical tensions. Market participants grew cautious after Turkey downed a Russian warplane on the border of Syria. Turkey claims that the plane entered its airspace; however Russia insists it was in Syrian territory.

The minutes of the latest Bank of Japan meeting showed that Board members had not discussed additional stimulus measures on October 6-7. This news supported the yen too. Nevertheless many BOJ officials said the bank has to be ready to act at once if the inflation target is at risk.

Investors are also closing orders ahead of Thanksgiving Day.

The Australian dollar rose to a one-month high even after RBA Governor Glenn Steven said yesterday the central bank still favors a looser monetary policy. Stevens also noted that inflation was not an obstacle for further rate cuts. The AUD and other commodity-dependant currencies are supported by growing oil prices amid concerns that growing tensions in the Middle East might undermine supplies from this region. The Australian economy depends on the defense sector and it could benefit from geopolitical tensions. A higher economic activity could prevent the RBA from lowering its benchmark interest rate. This would be a good news for the Australian dollar.

EUR/USD: the pair rose to $1.0675 in Asian trade

USD/JPY: the pair fell to Y122.25

GBP/USD: the pair rose to $1.5115

The most important news that are expected (GMT0):

(time / country / index / period / previous value / forecast)

09:30 United Kingdom BBA Mortgage Approvals October 44.5 45.5

12:00 U.S. MBA Mortgage Applications November 6.2%

12:30 United Kingdom Autumn Forecast Statement

13:30 U.S. Continuing Jobless Claims November 2175 2164

13:30 U.S. Durable Goods Orders October -1.2% 1.5%

13:30 U.S. Durable Goods Orders ex Transportation October -0.4% 0.3%

13:30 U.S. Durable goods orders ex defense -2%

13:30 U.S. Initial Jobless Claims November 271 270

13:30 U.S. Personal Income, m/m October 0.1% 0.4%

13:30 U.S. Personal spending October 0.1% 0.3%

13:30 U.S. PCE price index ex food, energy, m/m October 0.1% 0.1%

13:30 U.S. PCE price index ex food, energy, Y/Y October 1.3% 1.3%

14:00 U.S. Housing Price Index, m/m September 0.3% 0.5%

14:45 U.S. Services PMI (Preliminary) November 54.8 55

15:00 U.S. Reuters/Michigan Consumer Sentiment Index (Finally) November 90 93.1

15:00 U.S. New Home Sales October 468 500

15:30 U.S. Crude Oil Inventories November 0.252 1

21:45 New Zealand Trade Balance, mln October -1222 -937