Asian session: The euro touched its lowest level in two years

The 17-nation currency was 0.4 percent from a one-month low against the yen after European Union Economic and Monetary Affairs Commissioner Olli Rehn said Spain will have to take additional measures soon to meet budget targets.

The dollar strengthened versus most of its 16 major peers as Asian stocks declined.

The Australian and New Zealand currencies dropped after data showed growth in exports and imports slowed in China.

The euro declined to within 0.4 percent of its lowest level in two years, before reports forecast to show industrial production shrank in France and Italy as Europe’s debt crisis undermines growth.Industrial production in France probably dropped 1 percent in May from the previous month, when it climbed 1.5 percent, according to the median estimate in a Bloomberg News survey before Paris-based national statistics office Insee releases the report today.

European Central Bank President Mario Draghi signaled the bank may consider another interest-rate cut if the economic outlook warrants it, when he addressed lawmakers in Brussels yesterday. The ECB lowered the main refinancing rate to a record 0.75 percent and cut the deposit rate to zero on July 5.

EUR / USD: during the Asian session the pair retreated from yesterday's high.

GBP / USD: during the Asian session the pair fell to $ 1.5500.

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

In Europe, the EU finance ministers meeting continues in Brussels, while other events include the Bank of Portugal publishing the Summer Economic Bulletin. Scheduled European data starts at 0645GMT with France industrial output, while at 0800GMT Bank of France Governor  Christian Noyer is due to present the 2011 annual report, in Paris. Also at 0800GMT, ECB Governing Council member Jens Weidmann and German Finance Minister Wolfgang Schaeuble are due to attend the oral proceedings of German Constitutional Court in case against ESM and fiscal compact, in Karlsruhe.

US data starts at 1145GMT with the weekly ICSC-Goldman Store Sales data followed at 1255GMT by the weekly Redbook Average. US JOLTS (Job Opening, Labor Turnover) data is due at 1400GMT, while at the same time,the IBD/TIPP Economic Optimism Index is due. US data rounds off at 1900GMT with Treasury Allotments By Class data.

UK data at 0830GMT includes Industrial Production and the Trade Balance for May. At 14500GMT, the UK gets the NIESR Monthly GDP Growth Rate data. Later on, at 2045GMT, the Bank of England FPC's Bob Jenkins delivers a speech at Actuaries Event.