FOREX UPDATE - EUROPE

The US dollar traded with a soft undertone during the Asian session, posting a 1.2778-1.2820 range against the EUR and a 116.69-116.27 range against the JPY.
The risks of a US led global slowdown and speculation of further yuan appreciation are weighing on financial markets.
The USD softened while Japanese stocks ended the Asian morning session lower across the board with the Topix down 0.5%. Oil prices traded below $60, their lowest level in six months.

It's a moderately heavy data week in the US, and in general we expect the numbers to support market views that the economy is slowing, with contained price pressures.
Fed speakers will also be of interest with Fisher, Hoenig, Kroszner and Poole all scheduled, and the market will be sensitive to any changes in tone from the very consistent message sent over the past two months.

Fed's Fisher speaks on the economy (13:15, GMT), while August Existing Home Sales are due at 14:00, GMT.