Asian session: The euro was under pressure
The euro was under pressure against major currencies on concern European leaders will be unable to agree on steps to contain the region’s debt crisis at a summit this week.
The yen traded 0.9 percent from a one-week high versus the euro before Spain and Greece sell as much as 5.75 billion euros ($8.1 billion) of bills today amid concern surging bond yields threaten to boost financing costs.
Australia’s dollar pared earlier gains after minutes of the July policy meeting showed the Reserve Bank has scope to extend an interest-rate pause partly because of risks posed by Europe’s debt crisis.
Euro-area leaders will meet in Brussels on July 21 to discuss the “financial stability” of the region, European Union President Herman Van Rompuy said in an e-mailed statement July 15. The second meeting of European leaders in a month follows a worsening of the crisis that drove bond yields to euro-era records for Europe’s most debt-laden nations.
EUR/USD: the pair decreased in $1.4090 area.
GBP/USD: the pair shown high in $1.6080 area. Later the rate receded.
USD/JPY: the pair holds at Y79.00-Y79.20.
It is a fairly sparse calendar for Europe again on Tuesday with data limited to the 0900GMT release of both EMU construction output data for May and also the closer-watched German ZEW data for July, which is expected to show the expectations index decline to -12.0 and the current conditions slip to 85.0.
US data starts at 1145GMT with the weekly ICSC-Goldman Store Sales data, which is followed at 1230GMT by Housing Starts and Building Permits data. The pace of housing starts is expected to rise to a 575,000 annual rate in June, which would be a second straight gain.