Asian session: Demand for the euro was limited

Demand for the euro was limited before reports next week that may indicate a faltering recovery in the 17-nation region.

European industrial production probably declined 1.4 percent in December, according to the median estimate of economists surveyed by Bloomberg News before figures are released Feb. 14. A report the following day may show the region’s gross domestic product fell 0.4 percent in the fourth quarter, according to the median forecast in a separate poll. That compares with a 0.1 percent gain in the previous period. Greek Finance Minister Evangelos Venizelos said euro-area counterparts refused to approve a 130 billion-euro ($173 billion) aid package for Greece yesterday at an emergency meeting because the government fell short of austerity demands. Another extraordinary assembly of the ministers was set for Feb. 15.

The dollar and yen rose against their major peers as Asian stocks declined, boosting demand for haven currencies.

Australia’s dollar weakened after the Reserve Bank lowered its 2012 forecasts for growth and inflation. Australia’s currency slid versus most of its major peers today after the central bank said it sees the economy expanding at an average of 3.5 percent this year, in its quarterly monetary policy statement released today, down from its Nov. 4 estimate of 4 percent.

Consumer prices will rise 3 percent in the year through to the fourth quarter, less than a previous prediction of 3.25 percent, the RBA said.

EUR/USD: during the Asian session the pair decreases.

GBP/USD: during the Asian session the pair continues yesterday's falling.

USD/JPY: during the Asian session the pair gain, showed new week’s high.

The European calendar gets underway at 0700GMT, when Germany releases January final HICP data.  At 0745GMT, French industrial

output and December current account data is released. At 1030GMT, the German government official spokesperson gives a regular press conference, in Berlin. There is a string of UK data at 0930GMT. Fourth quarter construction data is released, along with the January Producer Price Index (PPI) and the Jan Input/Output.