European session: the euro rose sharply

Data

09:00 Germany IFO - Business Climate January 102.4 103.1 104.2

09:00 Germany IFO - Current Assessment January 107.1 107.3 108.0

09:00 Germany IFO - Expectations January 97.9 98.5 100.5

09:00 Switzerland World Economic Forum Annual Meetings -

09:30 United Kingdom GDP, q/q (preliminary) IV quarter +0.9% -0.1% -0.3%

09:30 United Kingdom GDP, y/y (preliminary) IV quarter 0.0% +0.2% 0.0%

09:30 United Kingdom Index of Services November +1.1% +0.5% 0.6%

The euro exchange rate rose sharply against the dollar while still achieving the highest level in the past 11 months. Note that this trend was caused by the publication of the data, which showed that the mood among German companies have improved in January, while still achieving the highest level since June last year, which was mainly due to signs of easing of the debt crisis in the eurozone. Research conducted by the Institute of Ifo, showed that the business climate index rose to a seven-month high in January

At this level, reaching 104.2, compared to 102.4 in December. Note that according to the average forecast of economists value of this indicator was increased to 103. The data also showed that this was the third consecutive monthly increase. At the same time, the report showed that the index of current conditions rose this month to the level of 108 to 107.1 in December, but was expected to grow only up to 107.3. Also on the rise in the cost of the single currency had a message the ECB, which said that 278 banks paid 137.16 billion euros in the first three-year LTRO program is January 30. The ECB also said that banks will continue to return the funds received under the first LTRO, every week. However, the ECB did not provide data on the repayment of funds received by banks under LTRO, for selected countries

Yen continued its decline against the dollar and the euro after the published statistics show that in December 2012 the country was in deflation, which increases the probability of making the country's central bank further stimulus measures. It is learned that basic consumer prices in Japan, a calculation which does not include the cost of fresh food, fell last month by 0.2% year on year. Note also that prices in Japan declined for seven of the last eight months. Thus, by the end 2012, the overall consumer prices fell a fourth straight year - by 0.1%.

Pound weakened for a second day against the euro, falling to 13-month low after a report showed the UK economy shrunk in the fourth quarter than analysts had forecast. Sterling fell to the lowest level in five months against the dollar, as the reduction in the UK has put on the brink of an unprecedented triple recession. According to the report, the gross domestic product declined in the fourth quarter by 0.3%, changing the increase of 0.9% in the third quarter, which was mainly due to increased activity during the Olympics. Note that the projected decline economists should have been 0.1%. Compared with the fourth quarter of 2011, GDP was unchanged, as it was in the third quarter, although the experts forecast an increase of 0.2%.

EUR / USD: during the European session, the pair rose to $ 1.3465

GBP / USD: during the European session shows mixed results, and is now trading at $ 1.5806

USD / JPY: during the European session, the pair rose to Y91.19

At 13:30 GMT, Canada will provide the consumer price index and the core consumer price index from the Bank of Canada in December. At 14:55 GMT the U.S. will indicator of consumer confidence from the University of Michigan in January. At 15:00 GMT the U.S. will know about the volume of sales in the primary market in December.