The euro declined against the dollar, snapping a five-day gain, before European Union leaders meet in Brussels to discuss the region’s debt crisis. EU leaders will meet in the Belgian capital today to put the finishing touches on a German-led deficit-control treaty and endorse the statutes of a 500 billion-euro ($659 billion) rescue fund to be set up this year. Greece and its creditors are “close” to an agreement on a debt exchange within a framework outlined by Luxembourg Prime Minister Jean-Claude Juncker, according to a Jan. 28 statement from the Institute of International Finance, which is negotiating on behalf of private bondholders. Italy is scheduled to sell debt maturing in 2016, 2017, 2021 and 2022 today. Fitch cut the ratings of Italy, Spain and three other euro-area countries on Jan. 27, saying they lack financing flexibility in the face of the regional debt crisis.

Italy, the euro area’s third-largest economy, was cut two levels to A- from A+. Spain was also lowered two grades, to A from AA-. Ratings on Belgium, Slovenia and Cyprus were also reduced, while Ireland’s was maintained.

The yen advanced for a third day versus the 17-nation euro as Italy prepares to sell bonds today after the country was downgraded by Fitch Ratings. Demand for the euro was supported amid speculation Greece and its private-sector creditors will reach an agreement on a debt-swap plan this week.

EUR/USD: during the Asian session the pair fell.

GBP/USD: during the Asian session the pair decreased below $1.5700.

USD/JPY: during the Asian session the pair was in range Y76.65-Y76.75.

EMU data sees the 1000GMT release of the January economic sentiment survey and business climate indicator. US data starts at 1330GMT with personal income data, which is expected to rise 0.4% in December, as payrolls jumped 200,000, the average workweek grew by 0.1 hours, and hourly earnings rose 0.2%. The weekly MNI Capital Goods Index is due at 1430GMT, followed at 1530GMT by the weekly MNI Retail Trade Index. Also at 1530GMT, the Dallas Fed Manufacturing Outlook Survey is due. Late US data ses quarterly borrowing requirements at 2000GMT.