Forex: Tusday's review

The euro advanced against the dollar and yen on speculation the European Central Bank will raise interest rates further even as nations such as Greece struggle to contain sovereign-debt turmoil.
The ECB governing council member Nout Wellink said in Toronto the central bank’s April 7 interest-rate increase sent to investors an “extremely important” signal aimed at preventing expectations of higher inflation.
Germany’s purchasing managers’ index for manufacturing unexpectedly climbed to 61.7 this month from 60.9 in March, according to Markit Economics. The median forecast of economists was for a decrease to 60.
Europe’s shared currency has dropped 1.6% over the past week. Citigroup Inc. said it has established a bet the euro will decline against the dollar.
The Canadian dollar rallied against the greenback as a government report showed the annual inflation rate accelerated to a two-year high, exceeding all economists’ forecasts.
The consumer price index advanced 3.3% in March from a year earlier, compared with 2.2% pace of increase in the previous month, Statistics Canada reported. The median forecast of economists was for a 2.8% annual rate.
The Bank of Canada will hold the target rate for overnight loans between commercial banks at 1% during the second quarter and boost it to 1.5% during the third quarter, according to a survey.

EUR/USD: on results of yesterday's session the pair grown in around $1.4330. 

GBP/USD: on results of yesterday's session the pair  grown above a mark $1.6300. 

USD/JPY: the pair bargained within the limits of Y82.30-Y82.80.

The minutes of the latest Bank of England MPC meeting, in April, are due for release at 0830GMT along with the latest Trends in Lending data. Analysts do not expect any change in the split seen in March, where five 
voted for unchanged policy. Posen's unchanged rate decision also came with a call for a further stg50 billion of QE, while Sentance voted for a 50bps hike and Weale & Dale looked for a 25bps hike. At this meeting, 
the MPC would have had a preview of the March inflation data, which fell back unexpectedly.

US data starts at 1100GMT with the weekly MBA Mortgage Application Index data and continues at 1400GMT with Existing Home Sales, which are expected to rise to a 5.00 million annual rate in March after falling 
9.6% in February. The supply of homes for sale has dipped in recent months as sales improved, but the reverse was true in February. US data rounds off with the weekly Crude Oil Stocks data at 1430GMT.