European focus: the euro fell
The euro weakened against the dollar, snapping a two-day gain, on speculation interest-rate increases in the 17-member euro-area will end as the region’s sovereign debt crisis curbs economic growth.
The shared currency declined after European Central Bank President Jean-Claude Trichet said yesterday the bank is reviewing its assessment of inflation risks as economic growth slows.
The Swiss franc and the yen rose versus most major currencies before U.S. reports today that economists said will show home prices and consumer confidence fell, spurring demand for assets considered safer investments.
The S&P/Case-Shiller index of home values in 20 U.S. cities fell 4.6 percent from June 2010, the biggest 12-month decrease since November 2009, according to the median forecast of economists before today’s data.