Asian session review: Euro falls; Franc gains

Data released:
00:30   Australia, Westpac Leading Index (MoM)    0.1%        -0.1%

The euro weakened for a second day against the yen after the leaders of Germany and France rejected calls for a joint-bond plan to stem the region’s debt crisis and amid signs growth is slowing.
The 17-nation currency extended yesterday’s decline against the dollar before a report today that economists said will show European inflation slowed in July.
The Swiss franc appreciated against all its major counterparts even as the central bank said it will take further measures if needed to combat the currency’s strength.
German Chancellor Angela Merkel and French President Nicolas Sarkozy rebuffed a proposed euro-area bond plan as well as an expansion of the region’s 440 billion-euro ($632 billion) rescue fund. A plan to resubmit a proposal for a financial- transaction tax, which the European Union rejected in 2010, sent U.S. stocks lower yesterday.

EUR/USD initially rose to $1.4420, but failed to hold above the figure and fell to a new session lows around $1.4320.
GBP/USD recovered from lows around $1.6408 to highs on $1.6456.
USD/JPY fell from Y76.80 to Y76.55/60.

In Europe attention will be on UK labor market data (08:30 GMT), BoE MPC minutes (08:30 GMT) and EMU HICP (09:00 GMT).
US PPI report will be in focus at 12:30 GMT.
EIA releases its oil stocks data at 14:30 GMT.