The euro gained versus the dollar for a second day as speculation persisted that Spain will eventually seek a bailout even after Prime Minister Mariano Rajoy said a request for rescue funds is not imminent. Spain’s Rajoy said today he has no plans to request a bailout soon, fending off mounting speculation that a bid was near. Asked at a press conference in Madrid if a bailout request was imminent, Rajoy said: “No.”

The yen fell versus most major currencies on bets Japan may act to weaken the currency, while the euro rose as Spanish and Italian bonds advanced before the European Central Bank meets Oct. 4. The Frankfurt-based ECB will keep its main refinancing rate unchanged at a record low 0.75 percent at this week’s meeting and will reduce it by the end of the year, a Bloomberg survey of economists forecast.

Australia’s dollar slid to a three- week low against its U.S. peer after the Reserve Bank of Australia unexpectedly cut its benchmark interest rate. RBA Governor Glenn Stevens and his board cut Australia’s overnight cash-rate target by a quarter-percentage point to 3.25 percent, the central bank said in a statement in Sydney today. It’s the lowest level since 2009.

New Zealand’s dollar gained versus most major peers after a report showed commodity export prices advanced last month, buoying the currency. ANZ National Bank Ltd.’s price index advanced 3.5 percent to 263 in September, its highest level since April.

Spanish Prime Minister Mariano Rajoy said he has no plans to request a bailout soon, fending off mounting speculation that a bid was near.

Asked at a press conference in Madrid today if a bailout request was imminent, Rajoy said: “No.”

Rajoy is weighing the terms of a Sept. 6 proposal by the European Central Bank President to buy bonds of cash-strapped nations including Spain if they make for a formal aid request from the euro region’s government-run rescue funds. Reuters news agency yesterday reported that Spain is ready to seek a bailout as soon as this weekend. 

EUR/USD  $1.2875, $1.2900, $1.2935, $1.2950, $1.3000, $1.3050

USD/JPY Y77.90, Y78.05, Y78.60

USD/CHF Chf0.9300

GBP/USD $1.6000, $1.6150, $1.6200

EUR/GBP stg0.7915

AUD/USD $1.0300, $1.0390, $1.0450, $1.0500

AUD/JPY Y81.00

Data
00:00 China Bank holiday -
01:30 Japan Labor Cash Earnings, YoY August -1.2% -0.9% 0.2%
04:30 Australia Announcement of the RBA decision on the discount rate - 3.50% 3.50% 3.25%
04:30 Australia RBA Rate Statement -
06:00 United Kingdom Nationwide house price index September +1.3% +0.2% -0.4%
06:00 United Kingdom Nationwide house price index, y/y September -0.7% -0.6% -1.4%
06:30 Australia RBA Commodity prices, y/y September -13.7% -14.9%
08:30 United Kingdom PMI Construction September 49.0 50.0 49.5
09:00 Eurozone Producer Price Index, MoM August +0.4% +0.6% +0.9%
09:00 Eurozone Producer Price Index (YoY) August +1.8% +2.6% +2.7%

The euro rose, recovering with the recent three-week low against the dollar amid growing signs that Spain was prepared to ask for help. But uncertainty about the timing of a negative impact on investor sentiment, which also causes the bulk sale of foreign currency.
Another risk factor is the rating agency Moody, which may soon revise the rating of Spain.
The Australian dollar fell today to a four-week low against the dollar and fell against the euro after the country's central bank cut interest rates by a quarter point, and leave room for further easing of monetary policy.
The pound rose for the first time in three days against the dollar as a report showed that the UK construction index declined at a slower pace in September.
Sensor construction activities, based on a review of Markit and the Chartered Institute of Purchasing and Supply, rose to 49.5 in September from 49 the previous month, while analysts expect the growth rate to the level of 49.9.
Sterling rose against the dollar even after a report showed that house prices in the UK fell in September. The average price of a house fell by 0.4 percent in August, and by 1.4% compared to last year.

EUR / USD: the pair decreased to $ 1.2880, then rose to $ 1.2930
GBP / USD: pair rose to $ 1.6170, then dropped to $ 1.6133 and is currently trading at $ 1.6145
USD / JPY: the pair is trading with an increase, setting all-time high at Y78.22

At 23:30 GMT Australia will index services from AIG in September.

EUR/USD

Offers $1.3048, $1.2990/300, $1.2970/80, $1.2920/25

Bids $1.2880, $1.2860/50, $1.2835/30

AUD/USD

Offers $1.0400, $1.0350, $1.0315/20

Bids $1.0290/80, $1.0250, $1.0200

GBP/USD

Offers $1.6310, $1.6215/25, $1.6200/10, $1.6175

Bids $1.6085/80, $1.6060/50, $1.6030/20, $1.6000

EUR/GBP

Offers stg0.8070/80, stg0.8035/45, stg0.8015/20, stg0.8005

Bids stg0.7945/40, stg0.7885/80, stg0.7860/50

EUR/JPY

Offers Y102.20, Y102.00, Y101.50, Y101.20

Bids Y100.40, Y100.20, Y100.00, Y99.80, Y99.65/60

USD/JPY

Offers Y79.00, Y78.70, Y78.50, Y78.40

Bids Y77.80/70, Y77.50, Y77.40/35, Y77.20

EUR/USD  $1.2875, $1.2900, $1.2935, $1.2950, $1.3000, $1.3050 

USD/JPY Y77.90, Y78.05, Y78.60

USD/CHF Chf0.9300 

GBP/USD $1.6000, $1.6150, $1.6200 

EUR/GBP stg0.7915

AUD/USD $1.0300, $1.0390, $1.0450, $1.0500

AUD/JPY Y81.00

EUR/SEK Sek8.5000

Data:

01:30 Japan Labor Cash Earnings, YoY August -1.2% -0.9% 0.2%

04:30 Australia Announcement of the RBA decision on the discount rate - 3.50% 3.50% 3.25%

04:30 Australia RBA Rate Statement -

Yesterday the euro gained from a three-week low versus the dollar as a U.S. manufacturing gauge unexpectedly rose and Spain’s latest budget and banking measures spurred bets the euro region is moving closer to containing its debt crisis. The Institute for Supply Management’s U.S. index of U.S. manufacturing rose to 51.5 in September from 49.6 a month earlier, the Tempe, Arizona-based group said today. A Bloomberg survey projected a reading of 49.7 for September. The dividing line between expansion and contraction is 50.

The 17-member currency strengthened versus all of its 16 most-traded peers after Moody’s Investors Service said Spain’s bank recapitalization is positive for the nation’s credit rating.

A gauge of European manufacturing based on a survey of purchasing managers was 46.1, above an initial estimate of 46 on Sept. 20, Markit said today. The index has held for 14 months below 50, indicating contraction.

Australia’s dollar touched the lowest level in more than a year against its New Zealand counterpart before the larger nation’s Reserve Bank holds a policy meeting tomorrow.

The Dollar Index, which IntercontinentalExchange Inc. uses to track the currency against those of six U.S. trading partners, fell 0.2 percent to 79.814 after rising earlier to 80.147, the highest since Sept. 11.

Bernanke said Fed policy makers “expect that a highly accommodative stance of monetary policy will remain appropriate for a considerable time after the economy strengthens.” The Fed’s forecast to hold the main interest rate near zero until at least mid-2015 “doesn’t mean that we expect the economy to be weak through” that year, he said in the text of a speech in Indianapolis.

Prospects for global growth have deteriorated

Prospects for economic growth next year will hurt

The balance of risks to the global economy shifted in a negative direction

Inflation will meet the target level

China's economic growth slowed

The Board pointed to the decline in export prices, the deterioration of the global economic outlook

Uncertainty surrounds China's prospects

The situation in the Australian labor market has deteriorated in recent months

Prices for key commodities have fallen dramatically

It takes time to change policy impacts on the economies

Terms of trade fell by more than 10% from the peak of 2011

(pare/closed(00:00 GMT +02:00)/change, %)

EUR/USD $1,2886 -0,22%

GBP/USD $1,6129 -0,65%

USD/CHF Chf0,9383 +0,14%

USD/JPY Y77,99 +0,47%

EUR/JPY Y100,51 +0,27%

GBP/JPY Y125,79 -0,17%

AUD/USD $1,0355 -0,87%

NZD/USD $0,8278 -0,43%

00:00 China Bank holiday -

01:30 Japan Labor Cash Earnings, YoY August -1.2% -0.9% 0.2%

04:30 Australia Announcement of the RBA decision on the discount rate - 3.50% 3.50%

04:30 Australia RBA Rate Statement -

06:00 United Kingdom Nationwide house price index September +1.3% +0.2%

06:00 United Kingdom Nationwide house price index, y/y September -0.7% -0.6%

06:30 Australia RBA Commodity prices, y/y September -13.7%

07:00 United Kingdom Halifax house price index September -0.4% +0.2%

07:00 United Kingdom Halifax house price index 3m Y/Y September -0.9% -0.9%

08:30 United Kingdom PMI Construction September 49.0 50.0

09:00 Eurozone Producer Price Index, MoM August +0.4% +0.6%

09:00 Eurozone Producer Price Index (YoY) August +1.8% +2.6%

23:30 Australia AIG Services Index September 42.4