Data:

09:30 UK Claimant count December 3.0 8.2 1.2

09:30 UK Claimant Count Rate December 5.0% 5.0% 5.0%

09:30 UK ILO Unemployment Rate December 8.3% 8.3% 8.4%

09:30 UK Average Earnings, 3m/y November +2.0% +2.0% +1.9%

09:30 UK Average earnings ex bonuses, 3 m/y November +1.8% +1.9% +1.9%

The euro advanced as the International Monetary Fund was said to seek a $500 billion expansion of its lending resources to safeguard the global economy.

The common currency strengthened before Greek Prime Minister Lucas Papademos resumes negotiations with bondholders over proposed losses today.

The dollar weakened before U.S. reports that economists said will show industrial production and confidence among homebuilders increased, damping demand for the safety of the greenback.

The pound fell against the euro as a report showed the British unemployment rate rose to a 16-year high.

EUR/USD: the pair has shown high in $1,2845 area, but returned back below $1,2800 later.

GBP/USD: during european session the pair was limited $1,5320-$ 1,5385.

USD/JPY: the pair has returned to area of session high Y76.80.

US data starts at 13:30 GMT with PPI data. At 1400GMT, US TICS data is due, followed at 1415GMT by US industrial production, which is expected to rise 0.5% in December after falling 0.2% in November. At 1430GMT, Federal Reserve Governor Daniel Tarullo testifies to a House Financial Services Subcommittee on the Volcker Rule. The US NAHB Housing Market Index is then due at 1500GMT.