European session: the euro declined

07:00 Germany Current Account January 20.2 10.5 11.3

07:00 Germany Trade Balance January 16.9 17.9 15.7

07:45 France Industrial Production, m/m January -0.1% -0.1% -1.2%

07:45 France Industrial Production, y/y January -2.1% -2.7% -3.5%

08:15 Switzerland Retail Sales Y/Y January +4.7% +3.7% +1.9%

The euro fell against the dollar amid risk aversion, which was caused by news that Fitch downgraded Italy's sovereign rating to the level of BBB + with a negative outlook, which increased political uncertainty. In addition, in the 4th quarter of Italy's economy shrank by 0.9% q / q in line with expectations, while the annual rate was 2.8% against expectations of 2.7% from a revised -2.7 % to 2.8% the previous value.

Also, the negative sentiment in the market have increased after the release of statistics from Germany and France. In Germany, the trade surplus narrowed by € 16.9 billion to € 15.7 billion, while imports (+3.3% vs. +1.0%) grew stronger exports (+1.4% vs. +0.3%. Industrial production in France fell by 1.2 % vs. +0.1%.

The situation is exacerbated concerns about the U.S. budget and trade-offs between the two parties.

Yen against the euro traded near three-week low after the release of negative statistics from Japan. Orders for industrial equipment in the country fell by 13% in January in monthly terms, which was the strongest decline in eight months. Analysts had expected a drop of 1.7%. In addition, the monthly results can have a strong influence major equipment orders. In the IV quarter of last year, Japan returned to growth by reducing the yen and the efforts of Prime Minister Shinzo Abe to fight deflation and recession in the country.

Additional pressure on the yen have word candidate to head the Bank of Japan Haruhiko Kuroda, who considers it necessary to pursue a more aggressive monetary policy. According to him, the main objective should be to achieve the inflation rate of 2%. "We are in a situation where we can not lower interest rates more.'s Why we have direct effect on market expectations," - said Kuroda.

EUR / USD: during the European session the pair fell to $ 1.2991.

GBP / USD: during the European session the pair fell to a 32-month low of $ 1.4864.

USD / JPY: during the European session, the pair traded in a narrow range of Y95.98 - Y96.08.

At 23:50 GMT, Japan will provide BSI index of business conditions for large manufacturers and business conditions index (BSI) for large enterprises in all sectors of the 1st quarter. Also during this time will be published minutes of the meeting of the Bank of Japan on monetary policy and the index of activity in the service in January.