The dollar weakened before data forecast to show the U.S. economy is gaining strength, stoking investor demand for higher-yielding assets. The U.S. currency fell versus 13 of its 16 major counterparts before reports that are expected to show U.S. GDP grew more than previously calculated and existing home sales increased. The euro gained as German import prices in November climbed the most in a decade. The pound slipped after the U.K. economy expanded at a slower rate than previously estimated, while the Swiss franc strengthened to a record against the common currency for a sixth day. “Home sales are the weakest element of the whole U.S. story so we are looking for a bounce back there in existing home sales,” said Jeremy Stretch, executive director of foreign- exchange strategy at Canadian Imperial Bank of Commerce in London. “If we get a positive number or something in line with expectations, then that would be helpful for risk appetite and would probably be supportive for euro-dollar and for the other riskier crosses.” The dollar weakened 0.3 percent to $1.3142 per euro, from $1.3100 at 11:49 a.m. in London. It was 0.2 percent lower at 83.56 yen, from 83.75. U.S. existing-home sales increased to a 4.75 million annual rate in November, up 7.1 percent from October, according to the median estimate of 70 economists surveyed by Bloomberg News. The world’s largest economy grew at a 2.8 percent annual rate in the third quarter, according to the median estimate of economists surveyed before a Commerce Department report. German Imports The euro gained after import prices in Germany, Europe’s biggest economy, climbed 10 percent in November from a year earlier, the most in 10 years, after a 9.2 percent increase in October, the Federal Statistics Office said today. Italy’s retail sales rose 0.3 percent in October from a month earlier. The euro rebounded from near a three-week low versus the dollar as its 14-day stochastic oscillator chart fell to about 16, below the threshold of 20 that signals an asset is poised to reverse direction. The single currency also strengthened after so-called stop losses were triggered near the $1.3115 to $1.3120 level, said Charles Han, Hong Kong-based head of foreign-exchange trading at Newedge Financial HK Ltd. “We’ve seen some buying in the euro as well as some stops being triggered, which is also prompting it to move a little higher,” Han said. “There are probably a lot more risks coming out of Europe so I’d prefer to sell on any rallies toward the $1.3160 area.” Downgrade Concerns A stop loss is an automatic instruction to either buy or sell a currency at a certain level to limit losses in case a bet goes the wrong way. The euro has fallen 1.8 percent versus the dollar since touching a three-week high of $1.3499 on Dec. 14. Earlier today it reached a record low against the Swiss franc of 1.2517 amid concerns of more credit downgrades in Europe. Portugal’s bond rating may be downgraded one or two levels by Moody’s Investors Service after the company warned yesterday of concern that budget cuts will worsen the country’s “sluggish” growth. Greece may have its credit rating cut to non-investment grade by Fitch Ratings within six weeks. The pound fell versus the euro after a report showed the U.K. economy expanded at a slower rate than previously estimated in the third quarter. Bank Split Data from the Office for National Statistics showed Britain’s gross domestic product rose 0.7 percent in the third quarter. That compares with an initial estimate of 0.8 percent. Second-quarter growth was revised to 1.1 percent from 1.2 percent. Minutes of the Bank of England’s December meeting showed policy makers remained split in their decision to keep the benchmark interest rate at a record low 0.5 percent and the asset-purchase program unchanged at 200 billion pounds. The pound depreciated 0.4 percent to 85.05 pence per euro. It was little changed at $1.5447, from $1.5470 yesterday. New Zealand’s dollar fell against 12 of its 16 most-traded counterparts. A government report tomorrow will show gross domestic product rose 0.1 percent in the third quarter from 0.2 percent in the previous three-month period, according to a Bloomberg News survey. “I’m relatively bearish on the kiwi,” said Masashi Murata, vice president of foreign exchange in Tokyo at BBH Investment Services Inc., a unit of New York-based Brown Brothers Harriman & Co. Expectations for domestic consumption and interest-rate rises have diminished, he said. New Zealand’s dollar was little changed at 74.41 U.S. cents. To contact the reporter on this story: Lucy Meakin in London at lmeakin1@bloomberg.net To contact the editor responsible for this story: Daniel Tilles at dtilles@bloomberg.net

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