Asian session: The euro was set to halt a five-week drop against the dollar

The euro was set to halt a five-week drop against the dollar as Italy prepared to sell bonds and after European Central Bank President Mario Draghi said policy makers have averted a credit shortage.

The 17-nation euro rose yesterday after Spain sold twice the maximum target at a note auction.

Italy will sell bonds due in 2014 and 2018 today. The nation’s Treasury raised 12 billion euros ($15.4 billion) from a bill auction yesterday. Italy’s 10-year yield fell 35 basis points, 0.35 percentage point, to 6.63 percent.

Spain raised 9.98 billion euros from yesterday’s note auction. The rate on the country’s 10-year debt dropped 19 basis points to 5.13 percent.

The greenback slid versus 15 of 16 major peers this week before a report that may show confidence among U.S. consumers gained, damping demand for the currency as a haven.

The Australian and New Zealand dollars fell against most of their 16 major peers amid concern U.S. economic growth may be weaker than forecast, sapping demand for riskier assets.

EUR/USD: on Asian session the pair gain.

GBP/USD: on Asian session the pair gain.

USD/JPY: on Asian session the pair fell.

Core-European data is limited to the 1000GMT release of the EMU trade balance. UK data comes at 0930GMT with PPI and also construction output. Producer prices have ended their long ascent and are coming back down.