Asian session: The yen and dollar touched the lowest in more than three weeks against the euro

The yen and dollar touched the lowest in more than three weeks against the euro as Asian shares extended a global rally on bets central banks are standing by to support growth, sapping demand for refuge assets. The yen held a decline from the end of last week against major peers amid speculation the Bank of Japan will take action to weaken the currency at a two-day policy meeting starting Aug. 8.

The Dollar Index slid to the lowest in a month before Federal Reserve Chairman Ben S. Bernanke speaks today. Bernanke is due to speak on economic measurement at a conference in Cambridge, Massachusetts today. The Labor Department said on Aug. 3 that U.S. payrolls increased by 163,000 in July, the most since February and exceeding the 100,000 gain estimated by economists surveyed by Bloomberg News. The unemployment rate rose to 8.3 percent from 8.2 percent in June.

Demand for the euro was limited before data tomorrow that may show Germany’s factory orders and Italy’s industrial output fell. Orders fell 7 percent in June from a year earlier, the steepest drop since October 2009, according to economist estimates before the figure is released in Berlin.

EUR / USD: during the Asian session the pair rose above $1.2400, but later declined.

GBP / USD: during the Asian session the pair fell, approaching $1.5600.

USD / JPY: during the Asian session the pair fell, retreating from Friday's high.

At 0930GMT, the German government gives a press conference in Berlin, although there is no major European economic data on the  schedule for Monday. UK data gets things started with the latest Halifax House Price Index at 0700GMT, while UK new car registrations data is also due, at 0800GMT. US events start at 1330GMT, when Federal Reserve Chairman Ben Bernanke speaks via recorded video to the 32nd General Conference of the International Association for Research in Income and Wealth, taking place in Boston.