Euro Snaps 2-Day Gain Before Factory, Growth Data Amid ECB Bets

 The euro snapped a two-day gain before data this week that may show the region’s factory output dropped and growth slowed, fanning speculation the European Central Bank will take more measures after a rate cut last week.

The yen was near a two-month low before Bank of Japan board member Ryuzo Miyao speaks today amid speculation the central bank will add to stimulus next year. The pound remained lower following a three-day slide before the Bank of England publishes economic forecasts in its quarterly Inflation Report today.

The euro was at $1.3434 at 9:59 a.m. in Tokyo after strengthening 0.5 percent in the previous two days to $1.3436. The yen was little changed at 99.63 per dollar after touching 99.80 yesterday, the weakest since Sept. 13. It traded at 133.83 per euro after a 0.7 percent slide to 133.87 yesterday.

Sterling lost 0.1 percent to $1.5889 after declining 1.2 percent since Nov. 7.

Factory production in the 17-nation euro region probably fell 0.3 percent in September from August, when it rose 1 percent, according to the median estimate of economists in a Bloomberg News survey. The European Union’s statistics office will report the figure today.

That’s followed by data tomorrow probably showing the euro-area economy expanded 0.1 percent in the three months through Sept. 30, based on a separate Bloomberg poll of economists. The region grew 0.3 percent in the second quarter, marking an end to a record-long recession.

(Source: Bloomberg)

Dollar Holds Gains Before Jobs Data as GDP Boosts Fed Taper Bets

The dollar held gains against most major peers before a U.S. jobs report today and after data yesterday showed the economy expanded more than forecast, fueling bets for an earlier taper in Federal Reserve stimulus.

The U.S. currency headed for a second weekly gain against the euro as a Bloomberg measure of U.S. economic surprises turned positive for the first time in almost a month. The euro was set for a second weekly loss versus the yen after the European Central Bank unexpectedly cut interest rates to a record yesterday. Australia’s dollar fell after the central bank reduced its growth forecast for next year.

The dollar was little changed at $1.3414 per euro as of 9:44 a.m. in Tokyo from yesterday, when it touched $1.3296, the strongest level since Sept. 16. The greenback bought 98.19 yen from 98.09. Japan’s currency traded at 131.72 per euro from 131.63 in New York, when it gained 1.3 percent.

The dollar has risen 0.5 percent against the euro this week, following a 2.3 percent rally last week. It has fallen 0.5 percent versus the yen, while Japan’s currency has gained 1 percent over the euro.

(Source: Bloomberg)

Euro Holds Gain Versus Peers Before ECB; Aussie Drops on Jobs

 The euro held yesterday’s gain against most major peers before European Central Bank policy makers meet today amid speculation the region’s economy isn’t fragile enough to warrant an interest-rate cut.

The euro yesterday halted a five-day drop against nine developed market counterparts tracked by Bloomberg Correlation Weighted Indexes, with ECB President Mario Draghi scheduled to speak after the bank’s decision. A gauge of U.S dollar strength remained lower, after falling yesterday, before data that may show an expansion in U.S. gross domestic product slowed last quarter. Australia’s dollar dropped against its 16 major peers after employment rose less than economists predicted.

The euro traded at $1.3503 at 9:54 a.m. in Tokyo, after yesterday rising 0.3 percent to $1.3513. The common currency fetched 133.29 yen from 133.31. The dollar was little changed at 98.72 yen. The Bloomberg U.S. Dollar Index, which tracks the greenback against 10 major currencies, was at 1,014.84 after dropping 0.3 percent to 1,013.48 yesterday.

The ECB will leave its main refinancing rate at a record low 0.5 percent today, according to 67 of 70 economists surveyed by Bloomberg News. Bank of America Corp., Royal Bank of Scotland Group Plc and UBS AG predict the central bank will reduce borrowing costs by 25 basis points.

(Source: Bloomberg)

Euro Falls to 2-Week Low as Inflation Data Fuel ECB Easing Bets

The euro slid to a two-week low against the dollar and the yen as signs of economic weakness in the currency bloc fueled speculation the European Central Bank will cut interest rates.

The 17-nation currency extended its biggest drop in more than a year versus the greenback before data forecast to show manufacturing contracted in France while it expanded in the U.S. Reports yesterday showed the euro region’s inflation slowed and unemployment climbed to a record. The dollar headed for a weekly gain against most of its major peers.

The euro slid 0.3 percent to $1.3545 at 10:47 a.m. in Tokyo after reaching $1.3540, the weakest since Oct. 17. Yesterday it dropped 1.11 percent, the most since June 2012. The shared currency declined 0.4 percent to 133.10 yen and reached 133.05, the lowest since Oct. 16.

The dollar fetched 98.29 yen from 98.36, set for a 0.9 percent weekly gain. It’s up 1.9 percent versus the euro since Oct. 25.

The Bloomberg U.S. Dollar Index, which tracks the greenback against 10 major currencies, was at 1,012.41 from 1,011.72 yesterday, set for the highest close since Oct. 15. The gauge was set for a 1.2 percent climb this week.

(Source: Bloomberg)