Asian session: The euro fell to a 15-month low versus the dollar

The euro fell to a 15-month low versus the dollar on speculation declining consumer confidence and spending will make it harder for European leaders to contain the region’s sovereign-debt crisis. The 17-nation currency was 0.2 percent from its weakest level in 11 years against the yen as Spain and Italy prepare to sell debt next week after France’s borrowing costs rose at an auction yesterday.  The dollar is set for a weekly gain versus the yen and euro before a U.S. report forecast to show employers added the most jobs in three months in December. The Dollar Index (DXY) reached a one-year high.

The Australian and New Zealand dollars declined for a third day on concern Europe’s debt crisis is deepening, sapping demand for higher-yielding assets. The so-called Aussie fell against 15 of its 16 major counterparts before European countries, including Germany, Greece, Spain and Italy, sell bonds next week. New Zealand’s dollar was set for a weekly advance against the majority of its most-traded peers before a U.S. report that economists say will show hiring increased last month in the world’s largest economy. Australia’s dollar fell 0.6 percent to $1.0208 as of 4:08 p.m. in Sydney from the close in New York yesterday. Payrolls in the U.S. climbed by 155,000 workers in December after rising 120,000 the previous month, according to the median estimate of economists in a Bloomberg News survey before Labor Department data today.

EUR/USD: on Asian session the pair fell.

GBP/USD: on Asian session the pair decreased, however was restored later.

USD/JPY: on Asian session the pair gain.

On Friday EMU data sees retail trade, unemployment data and also the business climate indicator/economic sentiment survey all at 1000GMT, where retail trade is expected to decline by a reading of -0.5% m/m, -0.8% y/y and the unemployment rate is expected to have edged up to 10.4%. At 1100GMT, Germany manufacturing orders are expected to decline after the previous month's strong gain. Events start at 0800GMT with the latest UK house price index from the Halifax. US data starts with the labor market data at 1330GMT where non-farm payrolls are forecast to rise 150,000 in December, continuing a trend of moderate payrolls gain. The unemployment rate is forecast to rebound slightly to 8.7% after falling 0.4 to 8.6% in November. Hourly earnings are expected to rise 0.2% after the 0.1% November decline, while the average workweek is forecast to hold steady at 34.3 hours. At 1430GMT, New York Fed President William Dudley speaks to the New Jersey Bankers Association in Iselin, N.J.