Asian session: The dollar touched the weakest almost two-years

The dollar touched the weakest almost two-years against the euro before U.S data that may add to the case for the Federal Reserve to keep its current pace of asset purchases for longer. A report from the department yesterday showed employers added 148,000 workers in September, trailing the increase of 180,000 seen in a Bloomberg poll of economists.

The Aussie dollar touched a four-month high on Australian inflation data before erasing gains. In Australia, core consumer prices gained more than economists forecast last quarter, increasing the likelihood the Reserve Bank will end its two-year easing of monetary policy. The Aussie erased gains after Chinese stocks dropped amid a jump in money market rates.

The pound touched a three-week high against the greenback before the Bank of England releases minutes today from its Oct. 9-10 meeting. The BOE’s Monetary Policy Committee held its target for asset purchases at 375 billion pounds ($609 billion) and kept its key interest rate at a record-low 0.5 percent.

The yen climbed against all its major counterparts amid demand for refuge assets.

EUR / USD: during the Asian session the pair rose to $ 1.3795

GBP / USD: during the Asian session, the pair rose to $ 1.6255

USD / JPY: during the Asian session the pair fell to Y97.25

The first eurozone data release is expected at 0900GMNT, when the EMU Q2 government debt data is released. At 0900GMT, ECB Governing Council member Ardo Hansson holds a press conference to discuss Financial Stability Review, in Talinn, Estonia. Then, at 1000GMT, the German Economics Ministry releases its updated economic forecasts, in Berlin. At 1300GMT, the Belgium September BNB business survey numbers will cross the wires. The EMU Oct flash consumer confidence index data will be released at 1400GMT. There is a stream of European central bank speakers expected from 1600GMT, when ECB Governing Council member Ewald Nowotny is set to speak during a book presentation in Vienna. At 1700GMT, Bundesbank Board member Rudolf Boehmler will speak during the Forum Bundesbank on "Deutsche Bundesbank as a stability anchor".

There is no early European data set for release Wednesday, with the first release set to be the Bank of England minutes at 0830GMT. Bank of England Executive Director Markets Paul Fisher said in his Oct 2 speech that "we do not intend to maintain a running commentary on whether the market has got it right

or wrong in relation to when Bank Rate will rise."