Asian session: The dollar and yen headed for weekly losses against most major peers

00:30 Australia Import Price Index, q/q IV quarter 0.0% +0.6% +2.5%

00:30 Australia Export Price Index, q/q IV quarter +4.0% -2.0% -1.5%

02:30 China HSBC Manufacturing PMI January 48.7 48.8

04:30 Japan All Industry Activity Index, m/m November +0.8% -0.6% -1.1%

The dollar and yen headed for weekly losses against most major peers amid U.S. data pointing to recovery in the world’s biggest economy, reducing demand for refuge assets.

The greenback touched a two-week low versus Europe’s currency before a report forecast to show sales of existing U.S. homes rose to the highest in 1 1/2 years.

The euro strengthened yesterday as Spain and France sold bonds at lower yields in their first sales of medium and long-term debt since being downgraded by Standard & Poor’s. Greece heads into a third day of talks with private creditors on a debt-swap plan.

The Australian dollar were poised for a fifth weekly advance as sovereign-debt sales in Europe signaled the region’s fiscal crisis is being contained, boosting demand for higher-yielding assets.

A preliminary reading of a purchasing managers’ index (MXAP) for manufacturing in China showed an increase to 48.8 this month from a final figure of 48.7 in December, according to data published by HSBC Holdings Plc and Markit Economics. An index above 50 means the number of manufacturers who said conditions improved was greater than the number saying they deteriorated.

EUR/USD: during the Asian session the pair showed new week’s high at $1.2985.

GBP/USD: during the Asian session the pair showed new week’s high at $1.5500.

USD/JPY: during the Asian session the pair gain.

On Friday UK data at 0930GMT sees Retail Sales as well as Bank of England Trends in Lending data.UK data at 0930GMT sees Retail Sales as well as Bank of England Trends in Lending data. US data starts at 1500GMT, when the pace of existing home sales is expected to rise to a 4.67 million annual rate in December after the 4.0% rise in November. The pending home sales index posted sharp gains in each of the last two months.