08:30 UK Claimant count (August) 20.3K

08:30 UK Claimant count rate (August) 4.9%

08:30 UK Average earnings (3 months to July) Y/Y 2.8%

08:30 UK Average earnings ex bonuses (3 months to July) Y/Y 2.1%

08:30 UK ILO Jobless rate (July) 7.9%

The euro strengthened against the dollar and the yen as Italian and Spanish bonds rose, damping concern that the debt crisis will engulf the euro region’s third- and fourth-largest economies.

The common currency advanced versus major peersafter ECB  bought Italian bonds today, according to five people with knowledge of the transactions, who declined to be identified because the deals are confidential. 

EUR/USD: the pair grown in $1.3750  area.

GBP/USD: the pair grown in $1.5800 area.

USD/JPY: the pair holds Y76.80 area.

US data starts at 1230GMT with both PPI and Retail Sales.Retail sales are expected to rise 0.3% in August, as vehicle sales were down only slightly after seasonal adjustment and AAA reported only a slight rise in gasoline prices after larger declines in June and July. Nonauto retail sales are forecast to rise 0.3%. Producer prices are 
expected to hold steady in August. Energy prices are expected to decline further in the month, while food prices are seen rising modestly. The 
core PPI is expected to rise 0.2%. 
Also at 1230GMT, US Treasury Secretary Tim Geithner gives the 30 minute interview on CNBC.
US data continues at 1400GMT, when business inventories are expected to rise 0.6% in July, as factory inventories were already reported up 0.5%, while wholesale inventories rose 0.8% in the month.