The euro was 0.8 percent from an 11- year low against the yen amid signs Europe’s debt crisis is damping economic growth.  The 17-nation currency held a four-day drop versus the dollar after Spanish and Italian bond yields jumped, while billionaire hedge-fund manager John Paulson was said to have told clients he sees 50 percent odds the euro will unravel. Moody’s Investors Service cut its ratings outlook for Germany and the Netherlands to negative yesterday, citing concern they’ll have to help indebted European nations.

Japan’s currency climbed even as the government said it’s ready to counter excessive moves.The yen tends to strengthen during periods of financial turmoil because Japan’s current-account surplus makes it less reliant on foreign capital. A stronger currency hurts exporters by making their goods more expensive overseas.

The Australian and New Zealand dollars snapped two-day losses after HSBC Holdings Plc and Markit Economics said a preliminary July reading of their manufacturing gauge for China rose to 49.5 from a final 48.2 for June. China is Australia’s biggest trading partner and New Zealand’s second-biggest export market.

EUR / USD: during the Asian session the pair traded in the range of $ 1.2110/35.

GBP / USD: during the Asian session the pair grew up.

USD / JPY: during the Asian session the pair fell.

Looking at the flash PMI data, Last month's final French manufacturing PMI data showed the sector emained firmly in contraction territory as output and new orders fell and jobs were cut at their fastest pace since September 2009. UK data at 0830GMT sees BBA lending and mortgage approvals data for June. US data starts at 1145GMT with the weekly ICSC-Goldman Store Sales data, followed at 1255GMT by the weekly Redbook Average. The flash PMI data for the US is also due, at 1258GMT. Then at 1400GMT, both the latest FHFA Home Price Index and also the Richmond Fed Manufacturing Index are due.