Asian session: The euro touched the lowest level in more than 11 years against the yen

The euro touched the lowest level in more than 11 years against the yen as concern escalated that Europe’s debt crisis is deepening.

An index of consumer sentiment in the euro region probably fell to minus 20 in July from minus 19.8 a month earlier, economists surveyed by Bloomberg News predict before today’s data. The gauge slid to minus 21.3 in December, the lowest level since August 2009.

The 17-nation currency continued its decline against the dollar into a fourth day as a surge in Spain’s 10-year note yields toward a euro-era record last week dimmed the outlook for a bill sale tomorrow. Spain, the euro region’s fourth-biggest economy, will auction bills tomorrow maturing in three and six months. The nation’s benchmark 10-year yield climbed to 7.284 percent on July 20, almost matching the euro-era record 7.285 percent reached a month ago.

The yen and dollar strengthened against most of their major peers on increased demand for a haven as Greece’s creditors assess the country’s progress in meeting its bailout targets. Greece’s troika of international creditors -- the European Commission, the European Central Bank and the International Monetary Fund -- will arrive in Athens tomorrow amid doubts the country will meet its commitments and reluctance among euro-area states to put up more funds should it fail. The IMF will stop paying rescue aid to Greece as it is already clear the nation will not be able to fulfill its promise to cut debt to 120 percent of annual economic growth in euro terms by 2020, Der Spiegel said, citing unidentified European Union officials.

EUR / USD: during the Asian session the pair fell to $1.2100.

GBP / USD: during the Asian session the pair continued Friday's decline.

USD / JPY: during the Asian session the pair fell to Y78.00.

It is a quiet start to the week on Monday for data, although things hot up in Europe for the rest of the week, with a busy schedule including PMIs and Ifo data, along with the Troika visits to Greece. However, European data for Monday sees just the 0900GMT release of EMU public debt ratios for the fourth quarter, while at 1000GMT the Bundesbank publishes the monthly bulleting for July. There are no major events due from the UK on Monday. Later on this evening in the US, Federal Reserve Governor Sarah Raskin speaks to the Graduate School of Banking in Boulder, Colorado on the subject of community banking.