Asian session: The yen pared declines

The yen pared declines against its major peers as demand for haven assets was boosted by a sixth day of Chinese equity declines, disappointing expectations that comments from the People's Bank of China would calm markets.

Japan's currency rebounded from a 0.4 percent drop versus the dollar as the Shanghai Composite Index slid as much as 1.9 percent.

The dollar held a five-day gain against the euro before data that will probably confirm U.S. economic growth accelerated in the first quarter. The common currency touched a three-week low after European Central Bank President Mario Draghi said yesterday the region still requires loose monetary policy. He is scheduled to speak today in Paris.

EUR / USD: during the Asian session the pair fell to $1.3055

GBP / USD: during the Asian session the pair traded in the range of $1.5400/30

USD / JPY: during the Asian session the pair fell below Y97.50

A much quieter calendar on Wednesday, with only limited data expected and a dearth of central bank speakers. The European calendar gets underway from 0610GMT, with the release of the July GFK consumer confidence numbers. Economists are looking for a number of 6.5, unchanged from the June number, although recent surveys could suggest a surprise to the upside. At 0930GMT, the BOE June FPC Stability Report will be released. At 1130GMT, the UK Chancellor George Osborne will outline the latest 4-year spending plans to Parliament, again seen centring on further public sector spending cuts.