During early European deals on Tuesday, the U.S. dollar showed mixed trading against its major counterparts as investors look forward to the U.S. government's revised figures for third-quarter gross domestic product.
While the dollar slumped to a new multi-week low against the yen, it remained higher against the pound. On the other hand, the dollar pared some of the gains it made in Asian deals against the euro and the franc.
The U.S. Bureau of Economic Analysis is due to release its third quarter GDP report at 8:30 am ET. The report is likely to show that the U.S. economy expanded at a 2.9% rate in the quarter.
Advance estimates revealed that the U.S. economy expanded at a 3.5% rate in the third quarter compared to a 0.7% contraction in the second quarter. Economists had expected a more modest 3.2% GDP growth.
Economic growth in the U.S. is likely to exceed its long-term trend in 2010, while the dollar is expected to weaken further, results of a survey by the National Association for Business Economics showed yesterday.
Real growth in gross domestic product for the fourth quarter is seen at 3%, while real GDP in 2010 as a whole is expected to gain 3.2%, the results of a poll of 48 professional forecasters revealed.
The survey also showed that the dollar was expected to weaken further in 2010, though it is tipped to stabilize against the euro. When asked to judge the present foreign exchange value of the dollar, 44% of respondents said it was undervalued on a fundamental basis, while only 20% believed that the currency was fundamentally overvalued.
At 9:00 am ET today, the S&P/Case-Shiller home price index is scheduled to be released. Economists expect a 9.05% year-over-year decline in the 20-city composite house price index for September.
The Conference Board is scheduled to release its consumer confidence report for November at about 10 am ET. The report is expected to show that the consumer confidence index edged down to 47.5 in November.
Most Asian and European stocks fell today as investors shrugged off upbeat U.S. home sales data and took profits on recent rallies.
Also, investors grew more cautious ahead of a string of U.S. economic data this week and the start of the Christmas shopping season on Friday after the U.S. Thanksgiving holiday, which will be a key test of consumer confidence.
In Asia, Australia's benchmark S&P/ASX200 Index declined 32.00 points, or 0.68% to close at 4,685, while the All-Ordinaries Index ended at 4,708, representing a loss of 31.00 points, or 0.65%.
New Zealand's NZX-50 index lost 5.36 points 0.17% at 3,107.61. Elsewhere, South Korea's Kospi declined 0.8%, China's Shangai Composite index dropped 3.45% and Hong Kong's Hang Seng slipped 1.5%.
In Europe, Germany's DAX index lost 0.7%, France's CAC 40 index declined 0.8% and U.K.'s FTSE100 index fell 0.6%.
The dollar fell to a new multi-week low of 88.57 against the yen in early European deals on Tuesday. The next downside target level for the dollar is seen at 88.0. At yesterday's close, the dollar-yen pair was quoted at 88.98.
The Bank of Japan raised its economic assessment for the third straight month, the latest Monthly Report of Recent Economic and Financial Developments revealed today.
The BoJ said Japan's economy is picking up mainly due to various policy measures taken at home and abroad, although the momentum of self-sustaining recovery in domestic private demand remains weak. Last month, the central bank said Japan's economy has started to pick up.
In Asian trading on Tuesday, the dollar climbed to 1.4890 against the euro and 1.0155 against the franc. But the dollar fell slightly in early European deals and it is currently worth 1.4938 against the euro and 1.0120 against the franc, compared to yesterday's close of 1.4963 and 1.0102, respectively. If the dollar weakens further, it may target 1.50 against the euro and 1.0075 against the franc.
The euro recouped its losses in early European deals on encouraging economic reports from Germany.
The German economy expanded 0.7% in the third quarter from the previous quarter, following the 0.4% increase seen in the second quarter, a detailed report from the Federal Statistical Office showed today.
The price-adjusted GDP was markedly down again on a year earlier. In the third quarter, GDP declined 4.7% compared to a 7% fall in the second quarter. The calendar-adjusted GDP was down 4.8%. The statistical office confirmed the preliminary estimate released on November 13.
In addition, German business climate index rose to 93.9 in November from 91.9 recorded in October, Ifo Institute for Economic Research said. Economists had forecast an increase to 92.5.
Ifo's current conditions index climbed to 89.1 from 87.4, more than the expected reading of 88. Similarly, the expectations index increased to 98.9 from 96.8, above the consensus forecast of 97.3.
Against the currency of U.K., the dollar rose in early trading on Tuesday. The pound-dollar pair that closed Monday's deals at 1.6608 is now worth 1.6520. On the upside, 1.646 is seen as the next target level for the dollar.
Looking ahead, the Euro-zone industrial new orders report for September is due at 5:00 am ET.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.