The Dollar and the Yen fell against higher yielding currencies in European trading today as better than forecast economic growth in Japan added to bullish global sentiment, lifting stocks and pressuring the Dollar. The stronger than expected data from Japan and expectations of higher global demand intensified the rally in gold prices pushing them to a new record high of $1,133 an ounce. Speculations that Federal Reserve Chairman Bernanke will today reaffirm the central bank’s pledge to keep interest rates low to support growth is putting further pressure on the Dollar. Bernanke will speak on the economic outlook at 17:15 GMT in New York. The Fed repeated its intention to leave borrowing costs “exceptionally low” for “an extended period” as long as inflation expectations are stable and unemployment continues to grow. Mixed data is expected to be released from the U.S today at 13:30 GMT. While Retail Sales in the U.S. likely recovered in October, rising 0.9%, according to economists, another report may show manufacturing in the New York region expanded at a slower pace in November. The New York Fed’s general economic index declined to 29.9, from 34.6 in October, according to economists.

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