The euro gained against the yen on speculation European Central Bank President Mario Draghi’s plan to buy bonds of debt-saddled nations in the region will bolster confidence in the single currency.

The 17-nation euro rose versus most of its major peers and approached a two-month high against the dollar before European Union President Herman Van Rompuy meets with German Chancellor Angela Merkel today in Berlin for talks and Italian Prime Minister Mario Monti welcomes French President Francois Hollande to Rome.

The EU’s rating outlook was cut to negative by Moody’s Investors Service yesterday, reflecting the risks to Germany, France, the U.K. and the Netherlands that account for about 45 percent of the group’s budget revenue.

Australia’s dollar halted a decline from yesterday after the nation’s Reserve Bank left its benchmark interest rate unchanged at a developed-world high today.

EUR/USD: during the Asian session, the pair rose above $1.2600.

GBP/USD: during the Asian session, the pair rose to a yesterday's high to $1.5900 .

USD/JPY: during the Asian session, the pair rose to Y78.40.

Scheduled European data starts at 0700GMT with unemployment data from Spain. Core-European data continues at 0900GMT with industrial PPI for July. Later, at 1300GMT, ECB Executive Board member Joerg Asmussen is due to speak on regulatory challenges and the debt crisis, in Frankfurt.  In the UK, at 0830GMT, Markit/CIPS Construction PMI data is due. US data includes domestic-made light vehicle sales, which are expected to rise to an 11.2 million annual rate in August after slowing modestly in July. Markit final US PMI data for August is due at 1258GMT, while at 1330GMT the weekly MNI Capital Goods Index is due. US data at 1400GMT includes the August ISM Manufacturing Index and July Construction Spending data.