Asian session review: Euro falls; Dollar gains

Data released:
08:30     United Kingdom     Retail Sales (MoM)     July     +0,8%     +0,3%     
08:30     United Kingdom     Retail Sales (YoY)     July     +0,4%     +0,1%

The dollar and yen advanced against most of their major counterparts as Asian stocks extended a worldwide rout in equities amid speculation European banks lack sufficient capital.
 The euro slid for a fourth day versus the yen as traders bet that the European Central Bank will cut its benchmark rate.
“The situation in Europe seems to be deteriorating by the day,” said Chris Weston, an institutional dealer at IG Markets in Melbourne. “If we do see an escalation and people start focusing again on credit markets like they did in 2008, the dollar will be back in vogue against the risk currencies.”
The MSCI Asia Pacific Index slid 3.2 percent after the Standard & Poor’s 500 Index tumbled 4.5 percent yesterday. Treasury yields tumbled to record lows in New York as investors sought the safest assets.
For the week, the U.S. currency is set for a 0.3 percent loss against the euro and a 0.2 percent drop against the yen.
Australia’s dollar fell as Citigroup Inc. cut forecasts for U.S. growth amid concern about a global economic slowdown, damping demand for higher-yielding assets

EUR/USD initially rose to $1.4340, but failed to hold above the figure and fell to a new session lows around $1.4270.
GBP/USD trades in the middle of the $1.6530-$1.6440 range.
USD/JPY trades near Y76.40.

UK data includes the Public Sector Finances for July at 0830GMT. US events start at 1230GMT, when New York Fed President William Dudley speaks on the regional and national economic outlook to the Meadowlands Chamber of Commerce in Lyndhurst, New Jersey. The main US data release for Friday is the BLS State Unemployment data, at 1400GMT. At 1745GMT, Cleveland Fed President Sandra Pianalto is due to deliver a speech on the economic outlook and the financial services industry to the Community Bankers Association of Ohio in Columbus. US Commercial and Industrial Loans data is due at 2015GMT.