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The euro extended its rally ahead of a European inflation report today that is expected to reinforce expectations of an interest rate increase.
On the UK economics front there was news of stronger than expected GDP growth in the second quarter, which helped reinforce expectations that interest rates have further to climb.
The yen fell on concern that a Bank of Japan survey of business confidence would reinforce expectations for slower growth.
The data served to reinforce expectations that the Fed's policy-making board would cut interest rates when it meets later this month.
Stocks closed higher yesterday, led by technology shares, as investors bet that the impending flood of earnings reports would reinforce expectations for improvement in corporate profits.
Chris Williamson, chief economist at Markit, says the data reinforce expectations that the UK economy made a good start to the third quarter.
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Singapore's exports grew more than expected in July as electronics shipments rose for a second month, reinforcing expectations that the economy will exceed the government's forecast of zero to 1percentt growth for this year.
So you get the possibility of self-reinforcing expectations".
British inflation remained low in February, reinforcing expectations that the Bank of England will again cut interest rates.
The euro rose as cooling German inflation reinforced expectations the European Central Bank will lower interest rates.
Figures released Wednesday reinforced expectations that output might have declined again.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com