Asian session: The euro advanced

The euro advanced to a one-month high on speculation Spain will move toward seeking financial assistance, helping contain Europe’s debt crisis. The 17-nation currency rose versus most major counterparts after Moody’s Investors Service held Spain’s credit rating at investment grade and as European Union leaders prepare for a summit in Brussels this week. Moody’s said in a statement yesterday it assigned a negative outlook on Spain’s Baa3 sovereign debt as it concluded the review for possible further downgrade of the country’s rating that it had initiated in June.

Spain will sell bonds due in 2022, 2016 and 2015 tomorrow. The nation’s 10-year yield fell one basis point to 5.81 percent yesterday after an auction of bills beat the maximum target.

The dollar slid against most of its major peers before data that may show new housing construction in the U.S. climbed last month, curbing demand for safer assets. The data will probably show that new construction rose to a 770,000 annual pace in September from 750,000 in the previous month, according to the median estimate of economists surveyed by Bloomberg News.

Australia’s currency reached a two-week high as Asian stocks extended gains in equities worldwide.

EUR/USD: during the Asian session the pair updated monthly high, but later fell to the opening level.

GBP/USD: during the Asian session, the pair rose to yesterday's highs.

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