The US dollar was continuing to weaken here against the yen and euro with traders nervous ahead of the economic data due for release in the US this week, dealers said. The euro/yen cross was down at 149.03 from earlier trading near 149.08 yen. CMC Markets currency strategist Robert Mulchay said the yen and euro have been trading in fairly tight ranges in Asia, with little sizeable volumes as traders await the London session to begin and the possibility of clearer direction then. He said traders are clearly focused on the downside risks for the US economic data releases this week and their implications for a possible Federal Reserve interest rate cut ahead. This includes tonight's release of existing home sales data for September with the market consensus expecting a 2.1 pct fall to 6.20 mln year-on-year compared to the 6.33 mln units over the year to August. "I think at the moment it is very much a US dollar story as opposed to anywhere else, so anything coming out of the US is what people are looking to focus on rather than stories elsewhere," Mulchay said. "The US dollar is driving currency market's and that's it." Meanwhile, National Australia Bank chief markets economist Rob Henderson said the highlight of the US economic data this week is likely to be Friday's release of the Federal Reserve's favored inflation indicator - the core PCE deflator. The market forecast is for a rise of 0.2 pct for August which would leave the annual rate unchanged at 2.4 pct. "The Federal Reserve has been shouting it from the rooftops that a reading greater than two pct is too high but at least it won't accelerate, if the market forecast is correct," Henderson said.