USDJPY

Underlying economic fears continued to provide some degree of defensive dollar support against the Euro. Nevertheless, as Wall Street rallied, the Euro pushed back to 1.29 later in US trading with liquidity dipping ahead of the Thanksgiving holiday. The EUR initially gained ground versus the US Dollar following the rise in European stock markets, but issued a retreat after disappointing economic data put downward pressure on the 15-nation currency.
This crisis is also pummeling countries outside the euro zone. Sweden slid into recession after the third quarter, data showed on Friday, and economists expect the Swedish central bank could slash rates also by an unprecedented 75-100 bps. Japan's industrial output and household spending tumbled in October, evoking memories of the decade-long stagnation of the 1990s and highlighting how rapidly the global financial crisis is derailing major economies. Countries as diverse as Canada, India and South Korea also released figures painting a bleak economic picture, but stocks edged higher as investors tentatively looked for bargains after six months of falls for global equity markets.