The dollar slipped for a second day versus the euro as talks between President Barack Obama and House Republicans hit an impasse and U.S. senators from both parties struggled to draft an accord that averts a U.S. default. Democratic lawmakers warned over the weekend that a lack of movement may have an effect on financial markets. U.S. stock trading will take place on the federal Columbus Day holiday today. Bond markets will be closed. Japan’s markets are closed today for a holiday.

The yen advanced versus the greenback for the first time in five days after Obama reiterated he will negotiate on the budget after the debt ceiling is raised and a partial government shutdown ends. The U.S.’s borrowing authority lapses on Oct. 17.

The euro gained before a report forecast to show industrial production in the region rebounded in August. Factory production in the 17-nation euro area rose 0.8 percent in August, after a 1.5 percent decline the previous month, the European Union’s statistics office is forecast to say today according to a Bloomberg News survey.

The Singapore dollar held a two-week gain after the central bank decided to retain the currency’s “modest and gradual” appreciation.

EUR / USD: during the Asian session the pair rose to $1.3565

GBP / USD: during the Asian session, the pair rose to $1.5985

USD / JPY: during the Asian session the pair fell to Y98.20

There is a limited calendar on both sides of the Atlantic Monday, as the Columbus Day holiday adds to the shutdown in keeping Federal offices closed. Despite Bond markets being closed in the US, stock markets are open, although trade is likely to be limited. The European calendar kicks off at 0630GMT, with the release of the September Banque de France retail trade survey. At 0900GMT, the eurozone August industrial output data will be published and is seen down 2.5% on the month. At 1100GMT, in Luxembourg, the Eurogroup of eurozone finance minister meet, to be followed by a full gathering of the Ecofin ministers at 1300GMT. EU FinMins are set to discuss backstops for banks participating in the ECB's balance sheet review, and plans for a Single Resolution Mechanism in Luxembourg. At 1530GMT, Executive Board member Benoit Coeure is slated to take part in a panel session at conference "Risk Taking in Financial Institutions, Regulation and the Real Economy" organised by ACPR in Paris, France. Later, at 1600GMT, ECB Executive Board member Yves Mersch will participate in an introductory event to the European Cultural Days 2013 "Latvia today" organised by the European Central Bank in Frankfurt, Germany.