European session:

Data:

07:00 UK Nationwide house price index (November) 0.4%

07:00 UK Nationwide house price index (November) Y/Y 1.6%

09:30 UK M4 money supply (October) final -0.3%

09:30 UK M4 money supply (October) final Y/Y -2.7%

09:30 UK Consumer credit (October), bln 0.0

10:00 EU(17) Economic sentiment index (November) 93.7

10:00 EU(17) Business climate indicator (November) -0.44

The euro rose sharply against the dollar on Tuesday, boosted by relief among investors that Italy managed to sell government bonds to the market even though it was forced to pay record high auction yields.

Traders said speculation of good demand at the auction started to drive the euro higher ahead of the results, while buying by hedge funds also drove the single currency higher.

Italy sold 7.5 billion euros of three- and 10-year government bonds, close to the upper end of its target range.

EUR/USD: the pair has shown high in $1.3440 area, but later has fallen in $1,3340 area.

GBP/USD: the pair has grown above $1.5600.

USD/JPY: the pair has fallen in Y77.80 area.

At 1500GMT, the FHFA Home Price Index is due at the same time as the index of consumer confidence is forecast to rebound to a reading of 44.4 in November after plunging in October to a reading of 39.8. The Michigan Sentiment index rose solidly in November. This is followed at 1530GMT by the Dallas Fed Services Outlook Survey. At 1630GMT, Fed Vice Chair Janet Yellen makes remarks on the global recovery at the San Francisco Fed's Asia Economic Policy Conference in San Francisco. At 0100GMT Wednesday (8pm Eastern), Minneapolis Fed President Narayana Kocherlakota delivers a speech on monetary policy to the Stanford Institute for Economic Policy Research in Stanford.