Asian session: The dollar reached the strongest against the euro

01:45 China HSBC Services PMI December 52.5 50.9

The dollar reached the strongest against the euro in a month before U.S. services and factory data today that may bolster the case for the Federal Reserve to end its bond-buying program this year. The Institute for Supply Management may say today its U.S. non-manufacturing index climbed to 54.6 last month from 53.9 in November, according to the median estimate of economists surveyed by Bloomberg News. A reading above 50 shows expansion among companies that account for almost 90 percent of the world’s biggest economy.

The Bloomberg Dollar Spot Index closed last week at the highest in almost four months after Fed Chairman Ben S. Bernanke said headwinds for the U.S. economy may be abating. The central bank said Dec. 18 it would trim monthly bond buying by $10 billion this month.

The yen climbed against most major peers as its decline last year was seen as excessive.

The euro slid to an almost three-week low against the yen before data tomorrow that may show the region’s inflation stayed below 1 percent. Euro-area inflation remained below 1 percent for a third-straight month in December, less than half the ECB’s goal, according to economists surveyed by Bloomberg before tomorrow’s report.

EUR / USD: during the Asian session, the pair traded in the range of $ 1.3580-00

GBP / USD: during the Asian session the pair fell to $ 1.6345

USD / JPY: on Asian session the pair fell to Y104.15

Financial markets are largely up to full strength Monday, although a few centres will be closed for the Epiphany holiday. There is a run of European data expected in the morning session, largely focusing on the Euro are services PMI data. The main euro area services PMI releases kick off at 0813GMT, when Spanish data crosses the wires. Analysts are looking for 51.6. Italian data follows at 0843GMT, with French services PMI due at 0848GMT. German data is expected at 0853GMT and amalgamated Euro area data at 0858GMT. Analysts see German data coming in at 54.0 and Overall euro area services PMI at 51.0. Composite euro area PMI is expected to come in at 52.1. Spain's December employment data will be released at 0900GMT. That will be followed at 0930GMT by the release of the European January Sentix Investor Confidence data, expected to rise to 9.5 from December's 8.