European session: the dollar rose sharply

Data
00:30 Australia Building Permits, m/m December +2.9% +1.1% -4.4%
00:30 Australia Building Permits, y/y December +13.2% +14.9% +9.3%
00:30 Australia ANZ Job Advertisements (MoM) January -3.8% -0.9%
09:30 Eurozone Sentix Investor Confidence February -7.0 -2.2 -3.9
09:30 United Kingdom PMI Construction January 48.7 49.7 48.7
10:00 Eurozone Producer Price Index, MoM December -0.2% -0.2% -0.2%
10:00 Eurozone Producer Price Index (YoY) December +2.1% +2.1% +2.1%

The euro exchange rate fell sharply against the dollar after the yield of Italian and Spanish bonds rose, which was associated with political instability in the third and fourth largest economies of the eurozone, while causing a decrease in demand for the European currency. Also influenced by the dynamics of trading forecasts, published today Barclays Plc. It is learned that the EUR / USD could fall to $ 1.32 in six months and up to $ 1.28 for the year, which was higher than the previous estimate of $ 1.26 and $ 1.22.
The single currency in relation to all but one of the 16 major currencies, amid speculation that the Prime Minister of Spain, Mariano Rajoy may resign after Spanish media reported that he accepted illegal payments. The poll also showed former Prime Minister Silvio Berlusconi has narrowed the gap between the favorite Pier Luigi Bersani, even though the litigation related to tax evasion.
Also today, the statistics agency Eurostat reported that the annual increase in producer prices in the euro area remained unchanged in December at 2.1%. Note that according to the average forecast of economists value of this index was to rise to the level of 2.2%.
The yen weakened to a level of 93 yen to the dollar, which was the first time since May 2010, as many market participants are waiting for a meeting of politicians of the European Central Bank, which will be held later this week.
The pound retreated from its weakest level in 15 months against the euro, as the political turmoil, the growth yield of Spanish and Italian government bonds increased the relative attractiveness of the UK currency. Exchange rate increased, even though the fact that one of the report published today showed that activity in the UK construction sector continued to decline in January, which is fixed for the third month. Economists say that this dynamic is primarily associated with a reduction in the number of new orders. According to the data, the index of business activity in the construction sector was 48.7 in January, unchanged from the previous month. Note that this value is a minimum of six months. The data also showed that the number of new orders in the sector continued to decline in January, registering with the 8th monthly fall. However, the rate of decline was the slowest since October 2012.

EUR/USD: during the European session the pair fell to a new low of $ 1.3550

GBP/USD: during the European session the pair rose to $ 1.5740

USD/JPY: during the European session the pair rose to a new high of Y93.20, but it is now trading at Y92.69

At 15:00 GMT we will know about the change in the volume of industrial orders in the U.S. in December. At 21:45 GMT New Zealand report on the change in the level of pay in the private sector, excluding overtime for the 4th quarter. At 00:30 GMT will index of activity in the service sector of the AiG Australia in January.