Foreign exchange market. European session: the British pound traded higher against the U.S. dollar, recovering its losses after the weaker-than-expected consumer price inflation from the U.K.

Economic calendar (GMT0):

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

00:01 United Kingdom BRC Retail Sales Monitor y/y December +0.9% -0.4%

02:00 China Trade Balance, bln December 54.50 49.85 49.61

05:00 Japan Eco Watchers Survey: Current December 41.5 44.3 45.2

05:00 Japan Eco Watchers Survey: Outlook December 44.0 46.7

09:30 United Kingdom Retail Price Index, m/m December -0.2% +0.2% +0.2%

09:30 United Kingdom Retail prices, Y/Y December +2.0% +1.6% +1.6%

09:30 United Kingdom Producer Price Index - Input (MoM) December -1.0% +0.3% -2.4%

09:30 United Kingdom Producer Price Index - Input (YoY) December -8.8% -12.2% -10.7%

09:30 United Kingdom Producer Price Index - Output (MoM) December -0.2% Revised From +0.2% -0.4% -0.3%

09:30 United Kingdom Producer Price Index - Output (YoY) December -0.6% Revised From -0.1% -0.6% -0.8%

09:30 United Kingdom HICP, m/m December -0.3% +0.1% 0.0%

09:30 United Kingdom HICP, Y/Y December +1.0% +0.7% +0.5%

09:30 United Kingdom HICP ex EFAT, Y/Y December +1.2% +1.4% +1.3%

The U.S. dollar traded mixed to higher against the most major currencies ahead of the U.S. job openings figures. Job openings are expected to rise to 4.85 million in November from 4.83 million in October.

The euro declined against the U.S. dollar in the absence of any major economic reports from the Eurozone. Political uncertainty in Greece and inflation data from the Eurozone still weighed on the euro.

Investors speculate that the European Central Bank could decide on its policy meeting on January 22 to purchase government bonds.

The British pound traded higher against the U.S. dollar, recovering its losses after the weaker-than-expected consumer price inflation from the U.K. The U.K. consumer price index declined to an annual rate of 0.5% in December from 1.0% in November. That was the lowest level since May 2000. Analysts had expected the consumer price inflation to decrease to 0.7%.

On monthly basis, consumer price inflation in the U.K. was flat in December, missing forecasts of a 0.1% rise, after a 0.3% decline in November.

Consumer price inflation excluding food, energy, alcohol, and tobacco increased to an annual rate of 1.3% in November from 1.2% in November. Analysts had expected the consumer inflation to climb to 1.4%.

The Bank of England's inflation target is about 2%.

Investors speculate that Bank of England will keep interest rates on hold for a longer period.

EUR/USD: the currency pair fell to $1.1775

GBP/USD: the currency pair increased to $1.5179

USD/JPY: the currency pair traded mixed

The most important news that are expected (GMT0):

15:00 U.S. JOLTs Job Openings November 4834 4848