Asian session: The dollar and yen slid versus most of their major peers

The dollar and yen slid versus most of their major peers as Asian stocks advanced amid speculation officials from the world’s leading economies will collaborate on a response to Europe’s crisis, damping demand for haven assets. The Dollar Index fell after Federal Reserve Bank of Chicago President Charles Evans said recent U.S. economic data warrant “extremely strong accommodation. “Finding a way to deliver more accommodation -- whether it is monetary or fiscal -- is particularly important now because delays in reducing unemployment are costly,” Chicago Fed President Evans said in a speech yesterday in New York. “Failure to act aggressively now will lower the capacity of the economy for many years to come.”

The yen slid for a third day against the dollar after Japan’s Azumi indicated that G-7 nations remain supportive of intervention to address extreme currency moves.

The euro extended a three- day gain versus the yen. Group of Seven finance ministers and central bank governors agreed to help Spain and Greece place their public finances on a sustainable footing, Japan’s Azumi told reporters in Tokyo following a conference call yesterday. European Central Bank policy makers will meet today to decide on the euro region’s borrowing costs. Out of 60 economists surveyed by Bloomberg News, 48 predict no change to the bank’s 1 percent rate. The rest forecast a decline of at least 25 basis points, or 0.25 percentage point, to 0.75 percent.

The Australian dollar strengthened versus the greenback and yen after a report today showed gross domestic product climbed 1.3 percent in the three months through March, more than twice the pace economists forecast in a Bloomberg survey. The Reserve Bank of Australia lowered its key interest rate yesterday by 25 basis points to 3.5 percent.

EUR/USD: during the Asian session the pair gain to $1.2500.

GBP/USD: during the Asian session the pair rose, updated a week’s high.

USD/JPY: during the Asian session the pair gain to a yesterday's high.

Wednesday sees UK markets return to the fray after the long Jubilee weekend. At 0830GMT, the UK sees the release of the May Markit /CIPS construction PMI data. EMU growth data (1Q 2nd estimate) is released at 0900GMT. At 1000GMT, Germany Apr industrial output data is released, followed at 1100GMT by comments from German Chancellor Angela Merkel answering questions from citizens, in Berlin age applications. The day's main event is the ECB monetary policy decision, at 1145GMT, followed by the Mario Draghi press conference at 1230GMT.