The euro and sterling eased versus the dollar as the subprime concern spread from US to European banks. The euro remained below 1.48 against the dollar, and the sterling fell to as low as 2.06.

The greenback was little changed after mixed data this morning. US third quarter GDP rose 4.9%, up from the previous reading of 3.5%. GDP deflator increased from 0.7% to 0.9%, above the estimate of 0.8%. US PCE index, an inflation gauge, remained at 1.7% in the third quarter as expected. US weekly jobless claims rose 22k to 352k, above the estimate of 332k.

Besides, US new home sales fell from 770k to 728k in October, below the estimate of 750k. This confirmed the expectation that the nation's housing sector is slowing.

The loonie fell to close to 1 versus the dollar after a report showed Canada current account balance fell sharply from 8.36 billion Canadian dollar to 1.04 billion in the third quarter.

Tomorrow will see several important US economic reports, including personal income and spending, PCE index, Chicago PMI, and construction spending. US personal income is seen remaining at 0.4% in October. Personal spending is expected to be at 0.3% unchanged.

EURUSD will face interim resistance at 1.4770, followed by 1.48 and 1.4830. Additional ceilings will emerge at 1.4850, backed by 1.4880. Support starts at 1.47, backed by 1.4680, 1.4650 and 1.4620. Subsequent floors are eyed at 1.46.

GBPUSD encounters interim resistance at 2.0630, backed by 2.0650 and 2.0680. Subsequent ceilings will emerge at 2.07, followed by 2.0730 and 2.0750. On the downside, support begins at 2.06, followed by 2.0580 and 2.0550. Additional floors are eyed at 2.0520, backed by 2.05 and 2.0450.

USDJPY encounters interim resistance at 110, backed by 110.30 and 110.50. Subsequent ceilings will emerge at 110.80, followed by 111 and 111.50. On the downside, support begins at 109.50 and 109.20, followed by 109. Additional floors are eyed at 108.80, backed by 108.50 and 108.