Asian session: The euro fell

The euro fell for second day before the European Central Bank meets tomorrow to discuss measures to tackle the region’s debt crisis. ECB President Mario Draghi told lawmakers in a closed-door session in Brussels this week the bank’s primary mandate compels it to intervene in bond markets to ensure the euro’s survival.

The 17-nation currency remained lower versus most of its major counterparts before data forecast to show retail sales declined and services contracted in the euro area. A final reading of an index based on a survey of purchasing managers in services industries in the euro area may confirm a drop to 47.5 in August from 47.9 a month earlier, below the 50 level which separates contraction from expansion, according to the median estimate of economists surveyed by Bloomberg before Markit Economics releases its figures today.

Germany’s Constitutional Court is set to rule on the legality of the European Stability Mechanism, the euro region’s permanent bailout fund, on Sept. 12. The ECB may delay giving full details of Draghi’s bond-buying plan until after the ruling, two central bank officials who spoke on condition of anonymity, said on Aug. 24.

The Australian dollar touched a six-week low after the government reported second- quarter gross domestic product grew less than analysts expected.

EUR / USD: during the Asian session the pair fell to $1.2520.

GBP / USD: during the Asian session the pair fell, approaching week’s low.

USD / JPY: during the Asian session, the pair rose to Y78.55.