Euro zone business activity shrank at its slowest rate in nine months, but a German PMI report disappointed and the euro slipped. [dailyfx.com] Technical positioning suggests the dollar could be poised for a bigger advance. [dailyfx.com] The yen weakened ahead of coming elections on expectations that monetary easing will follow. [Reuters] After Standard & Poor's lowered its U.K. credit rating outlook, the British pound hit a nine-day low against the euro. [exchangerate.org.uk] The yuan weakened Friday despite strong corporate demand on what traders suspected was central bank intervention. [CNBC] Hong Kong's central bank intervened for the seventh time this week, striving to maintain the Hong Kong dollar's peg against the U.S. dollar. [CNBC]

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