USD is Adding To Gains Against The JPY And EUR

The dollar is adding to gains against the yen and euro, but is only marginally higher against the U.K. pound, as some investors seek risk protection.

The dollar may receive an additional boost later today, especially against the yen, if the Chicago PMI for December, due 1445 GMT, comes in better than expected, traders said.

European stocks are expected to open slightly lower Wednesday, as investors look to take money off the table on the last full trading day of the decade.

Euro zone M3 data for November will be the key data release today, with the three-month average growth rate expected to decline to +0.8% from +1.6% in October. Such a weak print would set a new record low for the series, increasing concerns within the ECB about the possible emergence of a credit crunch next year.

The dollar's rally versus the yen picked up steam Tuesday after the S&P Case-Shiller home-prices indexes showed U.S. home prices decreased at a slower annual rate in October, a bullish signal for the all-important real estate sector.