Asian session: The dollar reached the highest in four weeks

01:30 Australia Private Sector Credit, m/m July +0.4% +0.4% +0.4%

01:30 Australia Private Sector Credit, y/y July +3.1% +3.1% +3.2%

05:00 Japan Housing Starts, y/y July +15.3% +14.5% +12.0%

The dollar reached the highest in four weeks against a basket of its peers before data forecast to show U.S. consumer spending rose for a third month, building the case for the Federal Reserve to reduce stimulus next month. Purchases of goods and services in the U.S. probably increased 0.3 percent last month after a 0.5 percent advance in June, according to the median forecast in a Bloomberg News survey of economists before today’s Commerce Department figures.

The final reading of the Thomson Reuters/University of Michigan index of consumer sentiment for August will probably be revised to 80.5, from an initial reading of 80, economists forecast. The gauge was at 85.1 in July.

U.S. gross domestic product expanded at a 2.5 percent annualized rate, up from an initial estimate of 1.7 percent, data showed yesterday. Economists projected a 2.2 percent gain.

Fed policy makers are debating whether the U.S. economy is strong enough to allow them to pare back monthly purchases of $85 billion in Treasuries and mortgage debt. Officials will reduce the amount at their next meeting on Sept. 17-18, according to 65 percent of economists in an Aug. 9-13 Bloomberg survey.

The yen rose against most of its major peers amid amid speculation the country’s exporters are repatriating overseas earnings.

Turkey’s lira headed for its biggest gain on a closing basis in three weeks. The U.K. parliament yesterday rejected Prime Minister David Cameron’s motion seeking endorsement for military strikes against Syria. Cameron had sought approval to join the U.S. in holding the Syrian government accountable for alleged chemical-weapon attacks against its own civilians.

EUR / USD: during the Asian session the pair rose to $ 1.3255

GBP / USD: during the Asian session, the pair rose to $ 1.5520

USD / JPY: during the Asian session the pair fell to Y98.05

UK Nationwide house prices at 0600GMT ahead of UK mortgage data at 0830GMT. Eurozone data begins with Germany retail sales at 0600GMT, EZ confidence data at 0900GMT, with US personal income at 1230GMT followed by confidence reports, beginning with Chicago at 1345GMT, UofM at1355GMT.