The 17-nation euro failed to rally after a five-day drop against the yen before data forecast to show French business confidence worsened, while Italian consumer sentiment stagnated. French industrial confidence probably fell to 89 this month from 90 in August, according to the median estimate of economists surveyed by Bloomberg News before the national statistics office Insee releases the report today. That would match the figure reached in July, which was the lowest since February 2010. Consumer confidence in Italy is estimated to remain at 86 this month, according to a separate poll.

The yen touched a one-week high versus the dollar as Asian stocks fell, spurring demand for Japan’s currency as a refuge.

Australia’s dollar pared losses from yesterday as a leading indicator for China’s economy rose in August, supporting trade prospects for the South Pacific nation.

The dollar is set for a decline versus most of its 16 major counterparts this quarter as expanded central bank stimulus and improving sentiment over U.S. growth prompts investors to seek higher-yielding assets. The Conference Board’s index of consumer confidence in the world’s biggest economy probably rose to 63.2 in September from 60.6 in August, based on a Bloomberg News survey of economists before today’s report. An index from S&P/Case-Shiller due today may show home prices in 20 U.S. cities rose 1.1 percent in July from the year-before period, the most since August 2010, according to a separate survey.

EUR/USD: during the Asian session, the pair traded in the range of $1.2925-55.

GBP/USD: during the Asian session, the pair traded in the range of $1.6215-40.

USD/JPY: during the Asian session, the pair traded in the range of Y77.80-90.

The European calendar kicks off at 0610GMT, with the release of the German GfK consumer confidence data, following after yesterday's weaker than expected IfO reading. The is followed at 0645GMT, with the release of French August housing starts/permits and the September service and manufacturing sentiment indices. Back in Europe, at 1300GMT, ECB President Mario Draghi is slated to give keynote address at the "Day of the German Industries", in Berlin. The US calendar kicks off at 1145GMT with the release of the ICSC-Goldman Store Sales for the Sept 22 week. At 1230GMT, Canadian July Retail trade numbers are released. At 1255GMT, the US Redbook Average numbers for the Sept 22 week are released. The July S&P/Case-Shiller Home Price Index is released at 1300GMT. US data continues are 1400GMT, with the release of the September Consumer Confidence (CB) data. Also at 1400GMT, the September Richmond Fed Manufacturing Index data is released. At 1530GMT, Philadelphia Federal Reserve Bank Pres. Charles Plosser speaks to the CFA of Philadelphia and Bond Club of Philadelphia. After, he will answer questions from the audience and media. At 1730GMT, Treasury Secretary Tim Geithner speaks to the Clinton Global Initiative in New York.