01:30 Australia National Australia Bank's Business Confidence (Aug) -8
The euro fell toward its lowest level since 2001 against the yen on speculation Greece is nearing default and before Italy sells bonds today amid concern the region’s debt crisis is worsening.
The 17-nation euro snapped yesterday’s gain against the greenback as traders wagered the European Central Bank will cut its benchmark interest rate over the next year, according to a Credit Suisse Group AG index.
Greece’s perceived chance of default in the next five years has soared to 98 percent, based on a standard pricing model of credit-default swaps, as Prime Minister George Papandreou fails to reassure international investors that his country can survive the euro-region crisis.
Italy will auction as much as 7 billion euros ($9.6 billion) of bonds today. The treasury is selling the debt to help pay for 14.5 billion euros of bonds maturing on Sept. 15.
An Italian government official yesterday said officials have held talks with their Chinese counterparts about potential investments in the economy. The purchase of Italian bonds by China was not the focus of the talks, which took place in the past few weeks, the official said on condition of anonymity, without specifying which assets may be involved.
EUR/USD: the pair holds in $1.3620-$ 1.3690. Later the rate renewed decrease.
GBP/USD: the holds in $1.5830-$ 1.5870.
USD/JPY: the pair has fell in area Y77.00
IEA monthly oil market report is due, at 0800GMT.
UK data at 0830GMT includes inflation and trade data as well as CLG House Prices. Consumer Price Inflation is expected to show price increases persisting at well over double the 2% official target. The BoE has said it expects CPI to approach a 5% annual rate once rising utility bills take their toll but that is not expected to be seen until the September data are released next month. Median forecasts for Tuesday look for CPI to come in at 0.6% m/m, 4.5% y/y with core-CPI at 0.6% m/m, 3.1% y/y. Trade is due out the same day and could well reflect the clear drop off in demand and orders from overseas seen in the recent Markit/CIPS PMI survey of the sector.
US data starts at 1230GMT with the Import/Export Price Index. Increases in import prices may be moderate due to only a small change in petroleum costs, and smaller increases in items like foods and motor vehicles. Export prices should benefit from favorable exchange rates and demand for
agricultural products.The two earliest monthly indexes for consumer confidence include the IBD/TIPP Economic Optimism Index for September at
1400GMT and could provide a strong hint about the direction of the preliminary Reuters/University of Michigan Consumer Sentiment Index on
Friday. Finally, at 1800GMT, the US Treasury is expected to post a $130.0 bn budget gap in August.