Yesterday gains in the yen are weighing on growth by eroding exporters’ profits, a factor cited by Moody’s Investors Service in cutting the rating outlook for Toyota Motor Corp. (7203) on Dec. 22. Europe’s debt crisis is reducing demand for the nation’s products, while earthquake reconstruction costs will swell spending. Japan and China will promote direct trading of yen and yuan without using dollars and will encourage the development of a market for companies involved in the exchanges, the Japanese government said.

Japan will also apply to buy Chinese bonds next year, allowing the investment of renminbi that leaves China during the transactions, the Japanese government said in a statement after a meeting between Prime Minister Yoshihiko Noda and Chinese Premier Wen Jiabao in Beijing yesterday. Encouraging direct yen- yuan settlement should reduce currency risks and trading costs, Japan’s government said.

Home prices in 20 U.S. cities probably declined at a slower pace and consumer confidence improved, signs the economy gained strength heading into 2012, economists said before reports this week.

EUR/USD: yesterday the pair traded with small increase.

GBP/USD: yesterday the pair has grown on a floor of a figure.

USD/JPY: yesterday the pair fell.

Tuesday there will begin at 07:00 GMT Switzerland the publication of the Consumption Indicator from UBS for November. At 14:00 GMT in the USA there will be S&P/Case-Shiller Home Price Indices for October. At 15:00 GMT the USA will be published with the indicator of consumer confidence for December (growth up to 58.9 against 56.0 the last month is expected). In end of day we are expected with the block of statistics from Japan.