Yesterday the euro  erased its drop as Germany’s Chancellor Angela Merkel said the Oct. 23 summit of European leaders will send a signal to defend the currency.

The Australian dollar rose against the U.S. currency as a rally in stocks and commodities spurred demand for higher-yielding assets.

The yen erased its gain versus the dollar after the Nikkei newspaper reported that the government and central bank will form a team of senior officials to oversee steps designed to address the currency’s strength.

EUR/USD: yesterday the pair fell, but restored later.

GBP/USD: yesterday the pair decreased.

USD/JPY: yesterday the pair holds in range Y76.65-Y76.90.

On Wednesday at 1230GMT, the pace of housing starts is expected to rise to a still weak 588,000 annual rate in September after falling to 571,000 in August. Soft new home sales continue to keep a lid on resurgence in home building. At the same time, US consumer prices are expected to rise 0.3% in September, with food and energy prices forecast to post further gains. Core CPI is expected to rise 0.2%.