Foreign exchange market. European session: the British pound dropped against the U.S. dollar despite the better-than-expected construction PMI from the UK

Economic calendar (GMT0):

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

01:30 Australia Building Permits, m/m July -5.0% +1.7% +2.5%

01:30 Australia Building Permits, y/y July +16.0% +9.4%

01:30 Australia Current Account, bln Quarter II -5.7 -13.8 -13.7

01:30 Japan Labor Cash Earnings, YoY July +1.0% Revised From +0.4% +0.9% +2.6%

04:30 Australia Announcement of the RBA decision on the discount rate 2.50% 2.50% 2.50%

04:30 Australia RBA Rate Statement

05:45 Switzerland Gross Domestic Product (QoQ) Quarter II +0.5% +0.5% 0.0%

05:45 Switzerland Gross Domestic Product (YoY) Quarter II +2.1% Revised From +2.5% +0.6%

08:30 United Kingdom PMI Construction August 62.4 61.5 64.0

09:00 Eurozone Producer Price Index, MoM July +0.1% 0.0% -0.1%

09:00 Eurozone Producer Price Index (YoY) July -0.8% -1.1% -1.1%

The U.S. dollar traded higher against the most major currencies ahead of the ISM manufacturing purchasing managers' index (PMI). The ISM manufacturing PMI in the U.S. is expected to decline to 57.0 in August from 57.1 in July.

The euro traded lower against the U.S. dollar on speculation that the European Central Bank (ECB) will add further stimulus measures. The ECB will released its interest rate decision on Thursday.

Investors have also concerns that sanctions against Russia would have a negative impact on the economic growth in the Eurozone.

Eurozone's producer price index fell 0.1% in July, after a 0.2% gain in June. June's figure was revised up from a 0.1% increase. Analysts had expected the producer price index to be flat.

On a yearly basis, Eurozone's producer price index dropped 1.1% in July, in line with expectations, after a 0.8% decline in June.

The British pound dropped against the U.S. dollar despite the better-than-expected construction PMI from the UK. The U.K. construction PMI increased to 64.0 in August from 62.4 in July, exceeding expectations for a decline to 61.5.

A YouGov poll weighed on the pound. A poll showed that there is a substantial shift toward Scottish independence. The "Yes" campaign (support for Scottish independence) is just six points behind the "No" campaign. Support of "No" campaign was down from 14 points in mid-August and 22 points less than a month ago, excluding undecided voters.

The Swiss franc traded lower against the U.S. dollar as the Swiss economy stagnated in the second quarter. Switzerland's gross domestic product (GDP) rose 0.6% in the second quarter, after a 2.1% rise in the first quarter. The first quarter's figure was revised down from 2.5% gain.

On a quarterly basis, the Swiss GDP was flat in the second quarter, after a 0.5% rise in the first quarter. Analysts had expected the GDP to remain unchanged.

EUR/USD: the currency pair fell to $1.3109

GBP/USD: the currency pair decreased to $1.6516

USD/JPY: the currency pair increased to Y105.01

The most important news that are expected (GMT0):

14:00 U.S. ISM Manufacturing August 57.1 57.0