Asian session: The euro fell

The euro fell for a third day amid speculation data will add to evidence that Europe’s failure to resolve its debt crisis is weighing on the region’s economy. The 17-nation euro slid to its lowest level in one week against the yen as economists said reports today may show French and Italian industrial production decreased in August. French industrial production probably declined 0.3 percent in August from July, when it gained 0.2 percent, according to the median estimate of economists in a Bloomberg News survey before the statistics office releases the report today. Separate data may show Italian output fell 0.5 percent during the same month, another poll showed. France is the euro area’s second-largest economy and Italy is the third-biggest.

Japan’s currency gained against most major peers as declines in stocks worldwide boosted demand for safer assets.

Losses in the euro were limited before Spain’s Prime Minister Mariano Rajoy meets French President Francois Hollande today in Paris as investors weigh whether the Iberian nation will ask for a bailout. Spain’s Rajoy last week pushed back expectations of a bailout, telling reporters no request was imminent. His deputy, Soraya Saenz de Santamaria, said the government needs to ensure a request for help from the European Stability Mechanism would be granted before it can call for aid. A bid to the ESM is needed to trigger support from the European Central Bank.

EUR/USD: during the Asian session the pair fell to $1.2835, updating week’s low.

GBP/USD: during the Asian session the pair fell to the previous day's low.

USD/JPY: during the Asian session, the pair traded in the range of Y78.15-30.

European data starts at 0645GMT, when French August industrial production data is release, followed at 0800 GMT with the release of the Italian industrial output numbers.   The US calendar starts at 1100GMT, when MBA Mortgage Application Index for the Oct 5th week are released. At 1400GMT, the US August Wholesale Inventories data are released, along with the July JOLTS Labor Turnover Survey. 1800GMT sees perhaps the main data release for the day, when the Federal Reserve's Beige Book hits screens. Two Fed speakers are up later in the session. At 1845GMT, Minneapolis Federal Reserve Bank Pres. Naryana Kocherlakota speaks to business and community leaders in Montana, and after will answer questions from the audience. At 2045GMT,  Dallas Federal Reserve Bank Pres.