The dollar has fallen towards a five-week low against the euro before a report today that may show that the U.S. housing market remains weak, adding to evidence that the world’s largest economy is slowing. The U.S. currency weakened versus 12 of its 16 major counterparts on speculation that the Federal Reserve’s Open Market Committee will also confirm that it is considering further measures to keep borrowing costs low at their meeting tomorrow.

In the U.K, data released this morning has revealed that home sellers lowered asking prices for a third month in September, wiping out half of the gains made since the start of 2010. Average asking prices in England and Wales fell 1.1 percent from the previous month and 3.4 percent over the last three months according to Rightmove, the operator of Britain’s biggest property website. A pickup in the supply of homes for sale is putting downward pressure on prices, while curbs on lending by banks are crimping demand. Bank of England Governor Mervyn King noted last week that bank balance sheets “are not in tremendously robust shape,” and that this may continue to restrain lending.

The Australian dollar has increased towards a two-year high after central bank Governor Glenn Stevens signalled earlier this morning that policy makers may need to resume raising interest rates should a mining boom stoke the economy next year and boost inflation. The currency has gained 6 percent so far this month as traders increased their assessment of the chances that the Reserve Bank of Australia will increase their benchmark rate on 5th October to 29 per cent.

Today, the economic calendar is again very thin. In US, the NAHB housing market index will be published whilst in the UK, M4 money supply data will be released. Global factors will continue to guide the price action on markets so market chatter on government finances of countries like Ireland and Portugal may continue to weigh on sentiment.

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