Asian session: The dollar headed

The dollar headed for a monthly advance versus the yen before U.S. data forecast to show consumer spending rose the most since February. U.S. consumer spending probably rose 0.5 percent in July from a month earlier, the most since February, according to the median estimate of economists in a Bloomberg News survey. The Commerce Department releases the figure today.

The greenback held a climb against the euro as investors weigh whether Federal Reserve Chairman Ben S. Bernanke will signal a new round of bond buying when he speaks in Jackson Hole, Wyoming tomorrow.

The euro was 0.6 percent from setting an eight-week high versus the yen after European Central Bank President Mario Draghi said it’s in Germany’s interest to consent to extraordinary steps to preserve the single currency. Draghi signaled on Aug. 2 that the central bank intends to join forces with governments to acquire bonds in sufficient quantities to lower borrowing costs, while conceding Germany’s Bundesbank has reservations about the plan. He will give a media briefing on Sept. 6 after a meeting of policy makers.

EUR / USD: during the Asian session, the pair rose, receded from the previous day's low.

GBP / USD: during the Asian session, the pair traded in the range of $1.5820-35.

USD / JPY: during the Asian session the pair fell to Y78.60.

Scheduled European data starts at 0600GMT with the ILO measure of the German employment change. Spain releases flash HICP data at 0700GMT, while the main German unemployment data for August is due at 0755GMT and is expected to see a 7k unemployment change, leaving the unemployment rate at 6.8%. EMU data at 0900GMT sees the August consumer confidence survey and business climate indicator, while at the same time, ECB Governing Council member Ewald Nowtny is due to speak at the European Forum Alpbach, in Aplbach, Austria. UK data for Thursday is limited to Bank of England Bankstats, M4 and Mortgage Approvals at 0830GMT. US data for Thursday sees August Store Sales, although the main releases start at 1230GMT with the weekly jobless claims and also personal income data. Weekly EIA Natural Gas Storage data is due at 1430GMT, followed at 1500GMT by the Kansas City Fed Production data for August. The US also conducts a 7-year note auction Thursday, while late data sees the weekly M2 Money Supply data at 2030GMT.