European session: The euro slid for a fourth day versus the dollar

Data:

06:00 United Kingdom Nationwide house price index June +0.3% +0.5% -0.6%

06:00 United Kingdom Nationwide house price index, y/y June -0.7% -0.6% -1.5%

07:55 Germany Unemployment Rate s.a. June 6.7% 6.7% 6.8%

07:55 Germany Unemployment Change June 0 4 7

08:30 United Kingdom Current account, bln Quarter I -8.5 -8.9 -11.2

08:30 United Kingdom BOE Credit Conditions Survey Quarter II

08:30 United Kingdom GDP, q/q (finally) Quarter I -0.3% -0.3% -0.3%

08:30 United Kingdom GDP, y/y (finally) Quarter I +0.5% -0.1% -0.2%

09:00 Eurozone Business climate indicator June -0.77 -0.87 -0.94

09:00 Eurozone Industrial confidence June -11.3 -12.0 -12.7

12:30 U.S. Initial Jobless Claims - 387 385 386

12:30 U.S. GDP, q/q (finally) Quarter I +3.0% +1.9% +1.9%

12:30 U.S. Core Personal Consumption Expenditure - Prices Index, y/y Quarter I +2.1% +2.1% +2.0%

The euro fell to a three-week low against the yen on speculation European Union leaders meeting for a two-day summit in Brussels will fail to agree a strategy to solve the region’s debt crisis. EU leaders meet today and tomorrow for the 19th summit on the region’s debt crisis. They are due to discuss a plan seen playing out over more than a decade for closer European integration. The blueprint, written by European Council President Herman Van Rompuy, centers on common banking supervision and deposit insurance, along with a “criteria-based and phased” move toward joint debt issuance.

The 17-nation currency slid for a fourth day versus the dollar as Italy paid the most to sell 10-year bonds since December and a research institute predicted the German economy will weaken this year. The number of people out of work in Germany rose a seasonally adjusted 7,000 to 2.88 million, the Nuremberg-based Federal Labor Agency said today. Economists had forecast an increase of 3,000.

The pound fell against the backdrop of heightened fears that the UK recession tightens. So, today's data showed that in the 1st quarter net income of Britons fell again, consumer spending declined and the economy contracted. Revenue fell 0.9% against the same drop in Q4, as reported today the National Statistics Office in London. GDP fell by 0.3%, coinciding with a preliminary estimate and forecasts of economists. The state of the economy, which can not escape from the recession, more and more pushing the Bank of England to resume purchases of bonds in order to revitalize the process of recovery. Fiscal measures the government is also putting pressure on demand. Industrial production fell by 0.5%. Production in the construction sector was revised up to -4.9% from -4.8%, while those in the services sector grew by 0.2% against 0.1% preliminary estimate. Consumer spending fell 0.1%, exports fell by 1.7% while imports decreased by 0.3%. Government spending increased by 1.9%, according to Office of Statistics. A separate report showed that business investment rose by 1.9% q / q, up 14.8% y / y