Asian session: The euro fell

The euro fell to the lowest level in almost two weeks as political uncertainty and weakening economic data in the currency bloc underscored the deepening impact of the debt crisis. The 17-nation euro also reached a two-week low versus the yen before reports that may show declines in Italian retail sales and European consumer confidence. A final reading of a consumer confidence index in the euro area will probably confirm the gauge dropped to minus 25.9 this month, the lowest since May 2009, according to a separate survey. The European Commission will publish the data tomorrow.

The yen was 0.1 percent from a more than one-week high versus the dollar amid losses in Asian equities as Spanish Prime Minister Mariano Rajoy faces calls for early elections and a possible international rescue of his nation. Spain pledged to meet its budget goals even as data released yesterday showed government spending through August rose from a year ago and tax receipts fell. Meanwhile, Catalan President Artur Mas called early elections for Nov. 25, saying the time has come for Spain’s richest region to seek “self- determination.”

Mas’s call comes as Rajoy struggles to gain acceptance for austerity measures and stokes frustration in Germany over his foot-dragging on whether to seek a bailout.

New Zealand’s currency fell after the nation’s trade deficit widened. In New Zealand, a statistics bureau report released today showed the nation’s trade shortfall in the 12 months through August was NZ$866 million ($709.7 million), compared with economist forecasts for a NZ$760 million gap and a revised NZ$768 million deficit in the year ended July 31.

EUR / USD: during the Asian session the pair fell below $1.2900, updating week’s low.

GBP / USD: during the Asian session the pair fell below $1.6150, updating week’s low.

USD / JPY: during the Asian session the pair traded in the range of Y77.70-80.

U.K. data starts at 0830GMT with the release of the Bank of England Credit Conditions Survey for the third quarter. This is followed at 1000GMT with the release of the September CBI Distributive Trades Survey. The US calendar gets underway at 1100GMT, with the release of the MBA Mortgage Application Index for the Sept 21 week. At 1400GMT, U.S. August New Home Sales numbers will hit screens. The pace of new home sales is expected to rise to a 380,000 annual rate in August after the 3.6% rise in July. Also in the US, at 1430GM,T, EIA Crude Oil Stocks data are released.