European session: euro fell

Data

01:00 Australia HIA New Home Sales, m/m June +0.7% +2.8%

08:30 United Kingdom Net Lending to Individuals, bln June 1.3 0.8 0.3

08:30 United Kingdom Mortgage Approvals June 51.1 47.3 44

09:00 Eurozone Business climate indicator July -0.94 -1.27

09:00 Eurozone Industrial confidence July -12.7 -13.5 +15.0

10:00 United Kingdom CBI retail sales volume balance July 42 18 11

The euro fell for the first time in four days against the dollar and the yen after it became known that the recession in Spain is compounded, and the fourth largest economy in the region will struggle to reduce debt. The single currency has dropped from nearly two-week high against the yen after a report showed that European debt crisis affected consumer sentiment. Also there were rumors that the European Central Bank President Mario Draghi will announce at the next meeting to be held on August 2 decision on additional measures to ease the debt crisis.

The Australian dollar rose against the dollar to its highest level in four months ahead of the publication of data on business optimism index, which came out far above expectations, indicating a possible improvement in fighting the debt crisis. But it also weakened against the yen on expectations of data on unemployment.

The pound weakened for the first time in three days against the dollar, reaching a five-week high after data from the UK showed that the number of approved applications for mortgages fell to 44,192 units, compared with a revised figure for May at 50,544 units, reaching a with the lowest level since December 2010. The average forecast in a survey of analysts had been at the level of 48,000 units. A separate report also showed that house prices fell for the first time this year and probably will decline further as the recession hampers demand for homes.