EUR/USD
The euro traded near a two year high against the dollar before the Federal Reserve begins a two day meeting. European new car sales rose the most in more than two years in September and euro area consumer confidence rose for an 11th month in October. Gross domestic product in the 17 nation bloc grew 0.3 percent in the three months through June after six quarterly contractions, and European Central Bank President Mario Draghi expects a further recovery toward the end of the year.
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GBP/USD
The pound was little changed against the dollar following last week’s drop as an industry report showed U.K. house prices increased for a ninth month in October. Britain’s currency was within two U.S. cents of a four week high versus the dollar as the data added to evidence the economy is strengthening. Gross domestic product grew 0.8 percent in the third quarter, the most since 2010, the government said last week.
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USD/JPY
The yen gained 0.1 percent to 97.61 per dollar after slipping 0.4 percent the past two days. Retail sales in Japan rose 1.8 percent in September from the previous month, after gaining 0.9 percent in August. The jobless rate dropped to 4 percent from 4.1 percent, while household spending rose a more than projected 3.7 percent last month.
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USD/CAD
The Canadian dollar halted a three day slide on speculation the currency had declined too far too fast as investors bet the Federal Reserve will maintain monetary stimulus that may devalue the U.S. dollar. A report October 31 may show economic growth in Canada slowed to 0.1 percent in August from 0.6 percent the previous month. Prices for crude oil, Canada’s largest export, rose 0.8 percent to $98.60 per barrel.
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