Asian session: The euro declined versus the dollar

The euro declined versus the dollar as prospects European leaders won’t be able to agree on how to resolve the region’s debt crisis boosted concern global growth will slow. The common European currency remained lower versus the yen following a weekly loss before German Chancellor Angela Merkel meets fellow coalition leaders today after opposing joint debt sharing in the 17-nation euro bloc. Merkel is scheduled to meet today with coalition partners Horst Seehofer, the Bavarian prime minister who heads the Christian Social Union, sister party to the Christian Democratic Union, and Philipp Roesler, leader of the Free Democratic Party.

The dollar rose as Asian stocks fell, boosting demand for the relative safety of the greenback. A report yesterday showed the expansion of China’s non-manufacturing industries slowed, while data last week indicated the U.S. unemployment rate climbed. China’s non-manufacturing purchasing managers’ index fell to 55.2 in May from 56.1 in April, the National Bureau of Statistics and China Federation of Logistics and Purchasing said yesterday. That’s the lowest reading since March 2011 when the federation started seasonally adjusting the data. In the U.S., payrolls climbed by 69,000 last month, according to a June 1 report. The figure was lower than the most pessimistic forecast in a Bloomberg News survey. The jobless rate rose to 8.2 percent from 8.1 percent.

Australia’s currency dropped before Reserve Bank policy makers meet tomorrow. In Australia, interest-rate swaps show central bank officials will cut the benchmark borrowing cost by at least 25 basis points to 3.5 percent tomorrow, according to data compiled by Bloomberg.

EUR/USD: during the Asian session the pair fell below $1.2400.

GBP/USD: during the Asian session the pair holds in a range $1.5340-$1.5370.

USD/JPY: during the Asian session the pair traded nearby Y78.15.

UK markets are closed, as the nation celebrates the Queen's Diamond Jubilee. European data is also limited.  At 0900GMT, the EMU April producer price index is releaded.  The US calendar kicks off at 1400GMT, April factory orders data is released.