U.S. SUMMARY: The JPY sank to its lowest level against the USD in more than half a year amid expectations that upcoming Japanese elections will bring to power a government keen on aggressive monetary policy easing. Japan's currency slid more than 1% against the USD for a second straight day on the likelihood that Shinzo Abe, whose Liberal Democratic Party has called for the Bank of Japan to employ unlimited easing to hit its 2%-3% inflation target, will win snap elections set for Dec. 16.The USD/JPY traded as high as 81.47, its highest level since late April. In Europe, meanwhile, markets largely ignored long-expected data indicating the euro zone had slipped into recession for the first time since 2009, with gross domestic product falling 0.1% from the previous three months. The EUR/USD crept up to trade as high as 1.2802. The USD/CHF was at 0.9422 vs 0.9449, the EUR/JPY was at 103.74 vs 102.19, and the GBP/USD was at 1.5857 vs 1.5846. The Wall Street Journal Dollar Index was at 70.857 from 70.824. Stocks ended lower as economic data points provided a mixed view of the state of the U.S. recovery; the Dow shed 0.2% while the Nasdaq fell 0.4%. Treasurys pulled off minor gains as investors erred on the side of caution as the nation creeps closer to a set of fiscal deadlines; five-year yields fell 0.5 bp to 0.617% while 10-year yields fell 0.3 bp to 1.586%. Crude oil futures fell on concerns over a growing inventory surplus, which hit a three-year high last week. December Nymex fell 87 cents to $85.45 a barrel. December Comex gold fell $16.30 to settle at $1,713.80 a troy ounce.
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