Asian session: The yen reached an eight-week high against the dollar

00:30 Australia ANZ Job Advertisements (MoM) -2.0% +0.2%

00:30 Australia National Australia Bank's Business Confidence 4 12

01:45 China                 HSBC Services PMI            52.8 52.4

05:00 Japan             Eco Watchers Survey: Current 51.2 52.2 52.4

05:00 Japan             Eco Watchers Survey: Outlook 51.2 54.2

The yen reached an eight-week high against the dollar as U.S. President Barack Obama reiterated he won’t negotiate with Republicans over the debt limit, driving demand for Japan’s currency as a haven. “We’re not going to negotiate under the threat of economic catastrophe,” Obama said yesterday during a visit to the Federal Emergency Management Agency in Washington.

Republicans are insisting on changing the 2010 Affordable Care Act, while Obama refuses to engage in discussions about policy conditions tied to opening the government or raising the debt ceiling. Treasury Secretary Jacob J. Lew has warned the U.S. may be unable to pay its bills after Oct. 17.

The yen strengthened by the most since Sept. 18 yesterday as the U.S. government’s partial shutdown continued for a seventh day.

Demand for the euro was supported before a report today forecast to show a rebound in German factory orders. In Germany, factory orders probably rose 1.1 percent in August, after a 2.7 percent decline the previous month, according to the median estimate of economists polled by Bloomberg before the figures due today.

EUR / USD: during the Asian session the pair fell to $ 1.3555

GBP / USD: during the Asian session, the pair fell to $ 1.6065

USD / JPY: during the Asian session the pair rose to Y97.15

Once again there is a full calendar on both sides of the Atlantic, although the US government shutdown and keeps data releases to private and Fed numbers. The European calendar kicks off at 0600GMT, with the release of the German August trade balance data. French data starts at 0630GMT, with the release of the September Bank of France business survey. At 0645GMT, the French budget deficit data and the foreign trade data will cross the wires. Spanish August industrial output numbers will cross the wires at 0700GMT. Swiss data is set for release at 0715GMT, when the August industrial output and September CPI numbers expected. German data is expected at 1000GMT, when August manufacturing orders are set to be released. Analysts are looking for an increase of 1.1% on month and 4.0% on year.