EU session review: Dollar depreciates on Asian stock gains

Data released
11:00     Germany     Industrial production (December) seasonally adjusted    -1.5%    -0.1%    -0.6 (-0.7)%
11:00     Germany     Industrial production (December) not seasonally adjusted, workday adjusted Y/Y    10.0%    12.9%    11.1%

The dollar fell against higher-yielding currencies as Asian stocks gained and U.S. equity futures fluctuated.
The U.S. currency stayed lower after China raised key interest rates by 25 basis points.
The greenback slid before Federal Reserve Chairman Ben S. Bernanke testifies tomorrow at a hearing of the House Budget Committee.
Fed Bank of Dallas President Richard W. Fisher said yesterday he’s unlikely to support further monetary accommodation and he’ll vote against any new quantitative easing beyond the $600 billion program of Treasury purchases.
A government report last week showed the U.S. unemployment rate unexpectedly dropped to 9% in January from 9.4% the previous month.
The pound weakened after the U.K. increased a levy on bank balance sheets. South
The pound slipped against 14 of its 16 most actively traded counterparts as U.K. Chancellor of the Exchequer George Osborne increased a tax on banks’ balance sheets to raise an extra 800 million pounds ($1.3 billion) as he continues to negotiate lending targets and curbs on pay.
The euro stayed higher against the majority of its most-traded peers after the National Federation of Independent Business said German industrial production unexpectedly contracted in December. The gauge fell 1.5%, compared with a median estimate for a 0.2% gain.

EUR/USD fell to a session lows at $1.3590 before recovered to $1.3660, where offers were mentioned. Later rate retreated to $1.3642.

GBP/USD weakened from $1.6160 to $1.6080, where bids are.

USD/JPY trades within the Y82.00/Y82.30 range.

Canada Housing Starts s.a (YoY) (Jan) 171.0K 171.5K