The euro strengthened to a one-month high against the dollar after Spain kept its investment-grade credit rating from Moody’s Investors Service, easing concern the region’s debt crisis was spreading. Moody’s said yesterday it kept Spain’s credit rating at Baa3, one step above junk, as the risk that the nation would lose market access had fallen because of the European Central Bank’s willingness to purchase its bonds.

The 17-nation currency appreciated for a fifth day versus the yen as Spanish and Italian bonds rallied. Spain’s 10-year bond yield fell as much as 29 basis points to 5.51 percent, the lowest since April 4, while Italian 10-year yields declined to the least since March 19. Benchmark Spanish borrowing costs have dropped more than 2 percentage points from their record high of 7.75 percent on July 25.

The dollar weakened versus all of its major peers as U.S. housing starts rose to a four-year high last month, damping demand for safer assets.

The pound rallied against the greenback after U.K. jobless claims unexpectedly declined.

EUR/USD $1.3000, $1.3030, $1.3100, $1.3115

GBP/USD $1.6010

AUD/USD $1.0205, $1.0215, $1.0220, $1.0240, $1.0250, $1.0300

EUR/GBP stg0.8150

USD/JPY Y78.50, Y78.90, Y79.00

USD/CHF chf0.9345, chf0.9350, chf0.9375

Data
08:30 United Kingdom Bank of England Minutes -
08:30 United Kingdom Claimant count September -15.0 -0.2 -4
08:30 United Kingdom Claimant Count Rate September 4.8% 4.8% 4.8%
08:30 United Kingdom ILO Unemployment Rate August 8.1% 8.1% 7.9%
08:30 United Kingdom Average Earnings, 3m/y August +1.5% +1.6% +1.7%
08:30 United Kingdom Average earnings ex bonuses, 3 m/y August +1.9% +2.0% +2.0%
09:00 Switzerland Credit Suisse ZEW Survey (Expectations) October -34.9 -28.9
09:00 Eurozone Construction Output, m/m August -0.3% +0.7%
09:00 Eurozone Construction Output, y/y August -4.7% -5.5%

The euro strengthened to one-month high against the dollar after Moody's affirmed the long-term rating of Spain at Baa3, and the rating outlook is negative.
The single currency rose for a fifth day against the yen on speculation that European Union leaders at tomorrow's meeting in Brussels, agreed to grant additional aid for Greece. Also today, the yield on 10-year bonds in Spain fell by 29 basis points to a level of 5.51%, the lowest level since April 4, while the yield on 10-year Italian bonds reached the lowest level since March 19.
At the same time, options traders reduced their short positions in the euro against the dollar up to the minimum values ​​for more than two years.
Dollar fell ahead of the report from the United States, which, as economists say, will increase the level of housing construction in the last month.
The pound rose against the dollar after the data from the UK showed that the unemployment rate unexpectedly fell. At the same time, it was a record number of workers, which was due to the Olympic Games.
The dollar index, which is used to track the value of the dollar against the currencies of six U.S. partner, decreased by 0.5% to 79.034.
Australia's currency rose to a two-week high against the U.S. dollar, as investors sought higher-yielding assets.

EUR/USD: pair rose sharply, updating the current session high, and is now trading at $ 1.3121
GBP/USD: the pair is trading with a significant increase in the vicinity of the maximum values ​​of the day at $ 1.6165
USD/JPY: the pair decreased and is now close to the minimum values ​​of the day at Y78.65

At 12:30 GMT the United States will report on the volume of building permits issued and the number of new foundations of bookmarks for September. At 14:30 GMT the U.S. will release data on stocks of crude oil from the Department of Energy in October.

EUR/USD

Offers $1.3220, $1.3150

Bids $1.3080/70, $1.3040, $1.3010/00, $1.2985/80

GBP/USD

Offers $1.6250, $1.6200

Bids $1.6105/00, $1.6050

AUD/USD

Offers $1.0450, $1.0420, $1.0400, $1.0350

Bids $1.0270, $1.0250, $1.0220, $1.0205/00

EUR/JPY

Offers Y104.80, Y104.50, Y104.00

Bids Y102.70/60, Y102.50, Y102.40/30, Y102.10/00

USD/JPY

Offers Y79.80, Y79.50, Y79.00

Bids Y78.50, Y78.40

EUR/GBP

Offers stg0.8250, stg0.8200, stg0.8180, stg0.8150

Bids stg0.8100, stg0.8085/80, stg0.8050, stg0.8040, stg0.8025/20

EUR/USD $1.3000, $1.3030, $1.3100, $1.3115

GBP/USD $1.6010

AUD/USD $1.0205, $1.0215, $1.0220, $1.0240, $1.0250, $1.0300

EUR/GBP stg0.8150

USD/JPY Y78.50, Y78.90, Y79.00

USD/CHF chf0.9345, chf0.9350, chf0.9375

Yesterday the euro rose above $1.30 for the first time in a week amid speculation that Spain is moving toward asking for financial assistance, reducing concern the region’s debt crisis is worsening.

The 17-nation currency strengthened for a fourth day versus the yen after Germany was said by two senior coalition lawmakers to be open to providing Spain a precautionary credit line. Comments by Michael Meister, a deputy caucus leader of German Chancellor Angela Merkel’s Christian Democratic bloc, and Norbert Barthle, her party’s budget spokesman, indicate a rolling back of German resistance to a full sovereign bailout for Spain. Schaeuble cautioned Spain against seeking aid on top of its bank bailout as recently as last month.

The dollar and the yen fell against most of their major counterparts as U.S. industrial production rose more than forecast last month, damping demand for the safest assets. Output at U.S. factories, mines and utilities rose 0.4 percent after a 1.4 percent decline in August that was the biggest since March 2009, the Federal Reserve reported today in Washington.

The Canadian dollar fell against most major peers after Bank of Canada Governor Mark Carney suggested he may reduce his economic outlook and delay raising policy interest rates.

The pound fell against the euro, as inflation in the UK slowed to the lowest level in nearly three years. It is learned that consumer prices in the UK rose by 2.2% compared to the previous year, and an increase of 2.5% in August. Thus, the annual dynamics was the lowest since 2009, which was in line with analysts' forecasts.

23:30 Australia Leading Index August +0.4% +0.5%

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

EUR/USD $1,3098 +1,17%

GBP/USD $1,6119 +0,30%

USD/CHF Chf 0,9231 -1,10%

USD/JPY Y78,86 +0,22%

EUR/JPY Y103,30 +1,36%

GBP/JPY Y127,10 +0,50%

AUD/USD $1,0302 +0,50%

NZD/USD $0,8170 +0,13%

USD/CAD C$0,9863 +0,56%

08:30 United Kingdom Bank of England Minutes -

08:30 United Kingdom Claimant count September -15.0 -0.2

08:30 United Kingdom Claimant Count Rate September 4.8% 4.8%

08:30 United Kingdom ILO Unemployment Rate August 8.1% 8.1%

08:30 United Kingdom Average Earnings, 3m/y August +1.5% +1.6%

08:30 United Kingdom Average earnings ex bonuses, 3 m/y August +1.9% +2.0%

09:00 Switzerland Credit Suisse ZEW Survey (Expectations) October -34.9

09:00 Eurozone Construction Output, m/m August -0.3%

09:00 Eurozone Construction Output, y/y August -4.7%

12:30 U.S. Building Permits, mln September 0.803 0.810

12:30 U.S. Housing Starts, mln September 0.750 0.770

14:30 U.S. Crude Oil Inventories - +1.7

21:00 New Zealand ANZ Job Advertisements (MoM) September +0.9%