U.K. PPI input rises unexpectedly ..

Producer price inflation input in the U.K. rose unexpectedly last month, official data showed on Friday.

In a report, National Statistics said that U.K. PPI input rose to a seasonally adjusted 0.1%, from -0.8% in the preceding month.

Analysts had expected U.K. PPI input to fall -0.1% last month.

Swiss employment level rises more-than-expected in Q3..

The number of people employed in Switzerland rose more-than-expected in the third quarter, official data showed on Monday.

In a report, the Swiss Federal Statistics Office said that the number of employed people in Switzerland rose to a seasonally adjusted 4.05 million during the third quarter, up from 4.02 million in the preceding quarter, whose figure was revised up from 2.77 million.

Analysts had expected the Swiss employment level to rise to 4.04 million in the third quarter.

The report showed that for the first time in two years the employment outlook indicator and the number of job vacancies show a very slight decline in year-on-year comparison. Employment should, nevertheless, remain stable for the next quarter.

Following the release of the data, the Swiss franc held on to losses against the U.S. dollar, with USD/CHF gaining 0.5% to trade at 0.9278.

Natural gas tumbles to 13-month low on warm weather outlook ..

Natural gas futures were down sharply on Monday, tumbling to a 13-month low as warmer-than-normal winter weather in the U.S. underlined the view that gas supplies are more than ample to meet U.S. winter-heating needs.

On the New York Mercantile Exchange, natural gas futures for January delivery traded at USD3.247 per million British thermal units during U.S. morning trade, tumbling 2.13%. 

It earlier fell by as much as 2.55% to trade at USD3.217 per million British thermal units, the lowest price since October 22, 2010.

The Commodity Weather Group said Friday that it expected above-average temperatures along most parts of the U.S. East Coast through mid-December.

The weather group forecast temperatures to be at least five degrees warmer-than-normal along the East Coast and about three degrees higher in interior regions, according to its 6-to-10-day outlook.

Weather service provider AccuWeather offered a similar outlook, saying it expected temperatures in the U.S. Northeast and Midwest, key gas-consuming regions, to mostly range from normal to slightly above normal from December 13 to December 17.

Natural gas prices have closely tracked weather forecasts in recent weeks. Above-normal winter temperatures reduce the need for gas-fired electricity to heat homes, dampening demand for natural gas.

Concerns over record-high supply levels in the U.S. also added to the selling pressure. Currently, total U.S. natural gas supplies stand at 3.831 trillion cubic feet. 

Stockpiles are 8.7% above the five-year average and 102 billion cubic feet higher than last year at this time, underlining the view that U.S. gas supplies are sufficient to meet the needs of even an unusually harsh winter.

U.S. inventories typically increase during the so-called "shoulder season", the period in autumn after air-conditioning demand falls but before heating begins.

But this year's increase, aided by unusually warm temperatures, offers a much larger cushion than in most years as winter approaches.

Gas futures typically climb during the winter months, as temperatures fall and demand for heating fueled by natural gas rises. But mild weather coupled with high production levels have kept prices depressed in recent weeks.

Elsewhere on the NYMEX, light sweet crude oil futures for delivery in January dropped 1.45% to trade at USD97.97 a barrel, while heating oil for January delivery shed 0.2% to trade at USD2.906 per gallon.

EUR/USD extends losses, tumbles more than 1% ..

The euro extended losses against the U.S. dollar on Monday, tumbling more than 1% amid sustained concerns over European leaders handling of the debt crisis in the single currency bloc.

EUR/USD hit 1.3214 during U.S. morning trade, the pair’s lowest since October 4; the pair subsequently consolidated at 1.3216, tumbling 1.26%.

The pair was likely to find support at 1.3144, the low of October 4 and a10-month low and resistance at 1.3381, the session high.

European Union leaders agreed Friday to draft a new treaty to implement tighter fiscal consolidation across the euro zone and to provide EUR200 billion in loans to the International Monetary Fund to assist countries with debt problems.

But investors remained unsure over whether the measures would go far enough to resolve the debt crisis after the European Central Bank indicated that it had no plans to step up its bond purchasing program, capping weekly bond purchases at EUR20 billion.

Earlier Monday, Standard & Poor’s chief European economist said Friday’s agreement was a significant step in resolving a "crisis of confidence,” but warned that time is running out and more action is needed.

The comments came after S&P placed the credit ratings of 15 euro zone members, including France and Germany, on watch for a potential downgrade last week.

Sentiment on the single currency soured after Moody’s said it will review the ratings of all EU countries in the first quarter, saying Friday’s summit failed to deliver “decisive policy measures” to end the region’s debt crisis.

The euro was also sharply lower against the pound, with EUR/GBP falling 0.80% to hit 0.8472.

Also Monday, Italy’s Treasury sold the full targeted amount of EUR7 billion of 12-month government bonds at an average yield of 5.95% compared to 6.08% at a bond auction last month.

Following the auction, the yield on Italian 10-year government bonds climbed back towards the near unsustainable levels hit last month, rising to 7.18%.

Dollar rallies as euro zone woes spur flight to safety ..

The U.S. dollar was sharply higher against its major counterparts on Monday, as investors remained skeptical over whether Friday’s European Union agreement would be enough to resolve the debt crisis in the euro zone.

During U.S. morning trade, the dollar was up against the euro, with EUR/USD tumbling 1.25% to hit 1.3216.

Sentiment on the single currency was hit after Moody’s said it will review the ratings of all EU countries in the first quarter, saying Friday’s summit failed to deliver “decisive policy measures” to end the region’s debt crisis.

EU leaders agreed to draft a new treaty to implement tighter fiscal consolidation across the euro zone and to provide EUR200 billion in loans to the International Monetary Fund to assist countries with debt problems.

But investors remained unsure over whether the measures would go far enough after the European Central Bank indicated that it had no plans to increase its bond purchasing program, capping weekly bond purchases at EUR20 billion.

Earlier Monday, Standard & Poor’s chief European economist said Friday’s agreement was a significant step in resolving a "crisis of confidence,” but warned that time is running out and more action is needed.

The comments came after S&P placed the credit ratings of 15 euro zone members, including France and Germany, on watch for a potential downgrade last week.

The greenback was also higher against the pound, with GBP/USD shedding 0.27% to hit 1.5627.

Elsewhere, the greenback was stronger against the yen and the Swiss franc, with USD/JPY rising 0.32% to hit 77.86, and USD/CHF jumping 1.23% to hit 0.9344.

In Switzerland, official data showed that the number of people employed rose more-than-expected in the third quarter, but for the first time in two years the employment outlook indicator showed a vey slight decline in a year-on-year comparison.

In addition, the greenback was sharply higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD surging 0.94% to hit 1.0264, AUD/USD tumbling 1.45% to hit 1.0069 and NZD/USD plunging 1.65% to hit 0.7625.

Earlier in the day, official data showed that Australia’s trade surplus increased less-than-expected in November. A separate report showed that Australian home loan approvals rose more-than-expected last month.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, jumped 1.17% to hit a two-month high of 80.07.

Also Monday, Italy’s Treasury sold the full targeted amount of EUR7 billion of 12-month government bonds at an average yield of 5.95% compared to 6.08% at a bond auction last month.

Following the auction, the yield on Italian 10-year government bonds climbed back above the critical 7% threshold, to levels widely seen as unsustainable.