European session: The dollar slid against most of its 16 major counterparts

Data:

07:30 Switzerland SNB Interest Rate Decision - 0.25% 0.25% 0.25%

07:30 Switzerland SNB Monetary Policy Assessment -

07:30 Switzerland SNB Press Conference -

08:00 Switzerland SNB Financial Stability Report 2012

08:00 Eurozone ECB Monthly Report June

09:00 Eurozone Harmonized CPI May +0.5% -0.2% -0.1%

09:00 Eurozone Harmonized CPI, Y/Y (finally) May +2.4% +2.6% +2.4%

09:00 Eurozone Harmonized CPI ex EFAT, Y/Y May +1.6% +1.6% +1.6%

The dollar slid against most of its 16 major counterparts before U.S. data that economists said will show consumer prices fell, strengthening the case for the Federal Reserve to take more steps to bolster the economy. The U.S. consumer-price index probably fell 0.2 percent in May from a month earlier, the biggest drop since December 2008, the median estimate of economists in a Bloomberg News survey showed. The Labor Department will release the figures today.

The euro’s advance against the U.S. currency was tempered after Moody’s Investors Service yesterday lowered the credit ratings of Spain and Cyprus, and before Greek elections on June 17. Moody’s yesterday cut Spain’s rating three steps to Baa3, one level above junk, citing the nation’s increased debt burden, weakening economy and limited access to capital markets. The ratings firm also lowered Cyprus’s bond rating to Ba3 from Ba1, attributing the downgrade to the material increase in the likelihood of a Greek exit from the euro area, and the resulting increase in the probable amount of support that the government may have to extend to Cypriot banks.

New Zealand’s dollar strengthened against all of its major peers after that nation’s central bank left interest rates unchanged.