Euro gains to highest in four years versus yen on ECB Comments

Retail Sales

The greenback weakened as a gauge of global volatility fell for a fifth day to its lowest level this month. JPMorgan Chase & Co.’s Global FX Volatility Index decreased to as low as 7.75%, its weakest since Oct. 30.

“The dollar is under a little bit of pressure,” Sireen Harajli, a foreign-exchange strategist at Mizuho Bank in New York, said in a phone interview. “Volatility is low, so we’re not seeing too much movement right now. Markets are in wait-and- see mode ahead of some key data we’re going to get tomorrow.”

The Commerce Department will say tomorrow that retail sales in the world’s biggest economy increased 0.1% in October after a 0.1% decline the previous month, according to the median estimate of economists surveyed by Bloomberg News. A separate report the same day is projected to show consumer prices stagnated in October from the previous month, after rising 0.2% in September.

The U.S. economy will grow 1.7% and 2.9% this year, the Organization for Economic Cooperation said in a semi- annual report today, broadly similar to the group’s May outlook. The world economy will probably expand 2.7% this year and 3.6% next year, instead of the 3.1% and 4% predicted in May, the Paris-based OECD said.

Options Trading

Trading in over-the-counter foreign-exchange options totaled $50 billion, from $55 billion yesterday, according to data reported by U.S. banks to the Depository Trust Clearing Corp. and tracked by Bloomberg. Volume in options on the dollar- Chinese yuan exchange rate amounted to $15 billion, the largest share of trades at 30%. Options on the dollar-yen rate totaled $9.7 billion, or 20%.

Dollar-yuan options trading was 353% more than the average for the past five Tuesdays at a similar time in the day, according to Bloomberg analysis. Dollar-yen options trading was 25% above average.

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