European session: the euro retreated from reached high

Data:

06:58 France PMI (October) flash 49.0

06:58 France PMI services (October) flash 46.0

07:28 Germany PMI (October) flash 48.9

07:28 Germany PMI services (October) flash 52.1

07:58 EU(17) PMI (October) flash 47.3

07:58 EU(17) PMI services (October) flash 47.2

09:00 EU(17) Industrial orders (August) 1.9%

09:00 EU(17) Industrial orders (August) Y/Y 6.2%

The euro weakened as European leaders struggled to convince investors they can craft an effective response to the region’s debt crisis.

The 17-nation currency fell after a report showed European services and manufacturing output contracted in October at the fastest pace in two years, adding to signs the economy is edging toward a recession.

European leaders meeting in Brussels yesterday outlined plans to assist banks, heading toward a revamped strategy to resolve the debt crisis. The 13th summit in 21 months excluded a forced restructuring of Greece’s debt, keeping with the policy of encouraging bondholders to accept “voluntary” losses to help restore the country’s finances. Leaders will meet again on Oct. 26.

EUR/USD: the pair fell in $1,3860 area.

GBP/USD: the pair fell in $1.5920 area.

USD/JPY: the pair decreased in Y76,10 area.