Foreign exchange market. European session: the euro traded lower against the U.S. dollar

Economic calendar (GMT0):

(Time/ Region/ Event/ Period/ Previous/ Forecast/ Actual)

00:30 Australia CPI, q/q Quarter III +0.5% +0.4% +0.5%

00:30 Australia CPI, y/y Quarter III +3.0% +2.3% +2.3%

08:30 United Kingdom Bank of England Minutes

The U.S. dollar traded mixed to higher against the most major currencies ahead of the U.S. consumer price inflation. The U.S. consumer price inflation is expected to be flat in September, after a 0.2% decline in August.

The U.S. consumer price index excluding food and energy is expected to rise 0.2% in September, after a flat reading in August.

The euro traded lower against the U.S. dollar. News that the European Central Bank is considering to buy corporate bonds still weighed on the euro.

Reuters reported yesterday that the European Central Bank (ECB) considering to start buying corporate bonds. The ECB could discuss the possibility of corporate bond buying program at its December meeting.

News by Spanish newswire Efe also weighed on the euro. Efe reported today that at least 11 banks had failed ECB stress tests. The ECB is expected to announce the results of stress tests on Sunday.

The British pound dropped against the U.S. dollar after the Bank of England's minutes of the monetary policy committee meeting. The Bank of England (BoE) released its minutes of the monetary policy committee meeting today. Two members, Ian McCafferty and Martin Weale, voted for the third consecutive month to raise interest rates to 0.75% from 0.5%.

Seven of the nine MPC members voted to keep interest rate at 0.5%.

The tone of the BoE's minutes was bearish. The BoE said that there was a slight loss of momentum in September, and it expects that GDP growth in the fourth quarter would slow to 0.8%.

The central bank pointed out that interest rate hike "might leave the economy vulnerable to shocks".

The Canadian dollar traded lower against the U.S. dollar ahead of Canadian retail sales and the Bank of Canada's interest rate decision. Canadian retail sales are expected to increase 0.2% in August, after 0.1% decline in July.

Canadian retail sales excluding automobiles are expected to rise 0.3% in August, after 0.6% drop in July.

Analysts expect that the Bank of Canada will keep its interest rate unchanged at 1.00%.

EUR/USD: the currency pair fell to 1.2680

GBP/USD: the currency pair dropped to $1.6010

USD/JPY: the currency pair traded mixed

The most important news that are expected (GMT0):

12:30 Canada Retail Sales, m/m August -0.1% +0.2%

12:30 Canada Retail Sales ex Autos, m/m August -0.6% +0.3%

12:30 U.S. CPI, m/m September -0.2% 0.0%

12:30 U.S. CPI, Y/Y September +1.7% +1.7%

12:30 U.S. CPI excluding food and energy, m/m September 0.0% +0.2%

12:30 U.S. CPI excluding food and energy, Y/Y September +1.7% +1.7%

14:00 Canada BOC Rate Statement

14:00 Canada Bank of Canada Rate 1.00% 1.00%

14:00 Canada Bank of Canada Monetary Policy Report

15:15 Canada BOC Press Conference

21:00 Australia RBA's Governor Glenn Stevens Speech

21:45 New Zealand CPI, q/q Quarter III +0.3% +0.5%

21:45 New Zealand CPI, y/y Quarter III +1.6%