London, July 17 (BridgeNews) - The following is a summary of overnight moves since Europe's close, plus possible leaders for the session ahead: KEY ISSUES:
* Euro finally breaks lower as Reynders' approval of its weakness weighs on the market * Japanese finance ministry officials put pressure on the BOJ to ease monetary policy further

The EUR finally responded to Eurogroup chairman Reynders approval of EUR weakness in US trading on Monday, and extended its losses in Asian trading overnight. The JPY weakened on poor underlying sentiment, before recovering slightly on profit taking and Japanese exporter sales.
--The EUR finally cracked in US trading in response to Reynders comment on Monday that a weak EUR has advantages as it improves euro zone export opportunities. EUR/USD reached a 1-week low of 0.8491 by the end of Asian trading while EUR/GBP dipped to an intraday low around 0.6080. Dealers warned, however, that the market is short in EUR/USD.
Tuesday sees the possible release of the German Icon consumer confidence index for July. Italian final June harmonized CPI rose 0.3% m/m and 2.9% y/y, unchanged from the preliminary data. BBK President Welteke speaks at 1000 GMT and 1300 GMT on the introduction of EUR notes and coins. UK RPIX data for June due at 0830 GMT is forecast to reflect lower crude oil prices in the month and come in markedly weaker after the spike higher seen in May. US June IP and capacity utilization data due at 1315 GMT are likely to show the US manufacturing sector remains under pressure, though a fall in the capacity utilization rate should ease inflationary pressures. Fed Governor Meyer speaks at 1400 GMT on inflation and inflation targeting.
--USD/JPY was lifted to a 6-day high of 125.67 in early Asian trading on the generally poor Japanese outlook, before running into profit taking and offers from Japanese exporters which sent it back to the 125.35 area. EUR/JPY tracked the EUR lower elsewhere, hitting a 2-day low of 106.55 in late Asian trading.
Japanese finance minister Shiokawa put extra pressure on the BOJ, saying a monetary easing is important in tackling price declines, and also said he wants to ask the BOJ how it views the impact of falling prices on the economy.
Further pressure was added when economy minister Takenaka said the BOJ can play a bigger role in the economy.
Japan's leading index for May was revised up to a reading of 77.8 from the initially reported 71.4.
BOJ Governor Hayami said he would consider further monetary steps "if necessary," though he said that the 5 trln JPY current account target is "enough for now." He added that the economic downside risk has increased since April and said there is no plan to adopt an inflation target.
--General USD/Europe strength send cable to a 1-week low around 1.3935 while USD/CHF climbed to a 6-day high of 1.7804. --AUD/USD followed the EUR lower to a 2-day low around 0.5060. BridgeNews