FOREX: Tuesday's review

Data released:
06:00     Germany     GDP (Q2) flash    0.1%    0.6%    1.3 (1.5)%
06:00     Germany     GDP (Q2) flash Y/Y    2.7%    3.1%    4.7 (4.9)%
08:30     UK     HICP (July)    0.0%    -0.2%    -0.1%
08:30     UK     HICP (July) Y/Y    4.4%    4.3%    4.2%
08:30     UK     HICP ex EFAT (July) Y/Y    3.1%    3.0%    2.8%
08:30     UK     Retail prices (July)    -0.2%    -0.2%    0.0%
08:30     UK     Retail prices (July) Y/Y    5.0%    5.0%    5.0%
08:30     UK     RPI-X (July) Y/Y    5.0%    5.1%    5.0%
09:00     EU(17)     GDP (Q2) flash    0.2%    0.4%    0.8%
09:00     EU(17)     GDP (Q2) flash Y/Y    1.7%    1.8%    2.5%
09:00     EU(17)     Trade balance (June) unadjusted, bln     0.9    -    0.0
09:00     EU(17)     Trade balance (June) adjusted, bln     -1.6    0.2    -0.8 (-0.6)
12:30     USA     Housing starts (July), mln    0.604    0.600    0.613 (0.629)
12:30     USA     Building permits (July), mln     0.597    0.604    0.624
12:30     USA     Import prices (July)    0.3%    -0.2%    -0.6 (-0.5)%
12:30     USA     Export prices (July)    -0.4%    -    0.1%
12:55     USA     Redbook (13.08)              
13:15     USA     Industrial production (July)    0.9%    0.3%    0.4 (0.2)%
13:15     USA     Capacity utilisation (July)    77.5    76.9    76.9 (76.7)
23:01     UK     Nationwide consumer confidence (July)         -    51

The euro weakened after German and French leaders refrained from introducing a mechanism for the region to jointly issue debt to contain its sovereign-debt crisis. A press conference between German Chancellor Merkel and French President Sarkozy featured a proposal to establish a eurozone economic council and a common government that would feature a president who would serve a term of two and a half years.
The 17-nation currency briefly pared losses after French President Nicolas Sarkozy said after a meeting with German Chancellor Angela Merkel that France and Germany are working on “ambitious” joint proposals to defend it.
The Swiss franc erased gains against the dollar and euro after U.S. industrial production climbed in July, curbing the currency’s haven appeal.
The pound rose versus the dollar after data showed U.K. inflation accelerated more than forecast.

EUR/USD rose from $1.4350 to $1.4474 before retreated to $1.4380.

GBP/USD also increased from $1.6230 to $1.6480. Later rate back off to $1.6440.

USD/JPY held within the Y76.60/90 range.

In Europe attention will be on EMU Current Account (08:00 GMT), UK labor market data (08:30 GMT), BoE MPC minutes (08:30 GMT) and EMU HICP (09:00 GMT).
US PPI report will be in focus at 12:30 GMT.
EIA releases its oil stocks data at 14:30 GMT.