European session: the euro weakened for a second day against the dollar and yen

The euro weakened for a second day against the dollar and yen after reports showed services and manufacturing in the region shrank in October more than economists predicted as the debt crisis stifled growth.

A composite index based on a survey of purchasing managers in manufacturing and services industries in the euro area fell to 45.8 from 46.1 in September, London-based Markit Economics said. Economists forecast an increase to 46.5. A number below 50 indicates contraction.

The 17-nation currency fell versus all except two of its 16 major counterparts as the Ifo institute in Munich said German business confidence dropped to the lowest level in more than two years.

The Ifo institute said its German business climate index dropped to 100 this month, the lowest since February 2010, from 101.4 in September.

The Dollar Index climbed to the highest in almost two weeks before Federal Reserve officials end a two-day policy meeting.

Fed Chairman Ben S. Bernanke and his colleagues on the Federal Open Market Committee will conclude a two-day meeting in Washington today and release a statement on policy, including their current plan to buy $40 billion in mortgage-backed securities each month for an indefinite period as they seek to nurse the economic recovery.

The Australian dollar advanced after an industry report signaled a slowdown in Chinese manufacturing was abating, and as a local data showed consumer prices rose more than economists forecast last quarter.

HSBC Holdings Plc and Markit Economics said a preliminary reading of a purchasing managers’ index for China climbed to 49.1 in October from 47.9 last month. China is Australia’s biggest trading partner.

EUR / USD: during the European session, the pair rose $ 1.2996 and then fell to $ 1.29257

GBP / USD: during the European session, the pair rose to a new high of $ 1.6021

USD / JPY: during the European session the pair fell to Y79.68

U.S. 13:00 GMT publish an index of business activity in the manufacturing sector in October, at 14:00 GMT - the volume of home sales in the primary market in September, at 14:30 GMT - data on stocks of crude oil from the Department of Energy. At 14:30 GMT will publish the report of the Bank of Canada's monetary policy. At 15:15 GMT will hold a press conference of the Bank of Canada. At 18:15 GMT FOMC decision will be published on the basic interest rate and the accompanying statement will be made FOMC. At 20:00 GMT we will know the decision of the Reserve Bank of New Zealand Interest Rate will be done the accompanying statement of the Reserve Bank of New Zealand.