European session review: current trends are adjusting.

The yen fell against 15 of its 16 major counterparts as China refrained from raising interest rates, lifting stock markets at the expense of safer assets.

The yen declined for a second day against the dollar as the MSCI World Index climbed 0.3 percent and copper prices rallied. The U.S. currency rose as Treasury yields advanced before a report tomorrow that may show U.S. retail sales climbed for a fifth month.

“There are signs that the global economic recovery might not be as bad as some have feared, and the level of confidence has improved,” said Neil Jones, head of European hedge fund sales at Mizuho Corporate Bank Ltd. in London. “The yen is likely to underperform in this risk-on environment.”

Consumer prices in China rose more-than-forecast 5.1 percent in November from a year earlier, statistics showed over the weekend. Confidence among U.S. consumers increased in December to a six-month high, the Thomson Reuters/University of Michigan preliminary index of consumer sentiment showed Dec. 10.

EUR/USD the euro is strengthening, reaching res at $1.3300.

GBP/USD the pound is adjusting after testing $1.5720.

USD/JPYthe yen has bounced from МА(64).


Canada data sees capacity utilization at 13-30 GMT.