European session: the euro rose slightly against the U.S. dollar

Data

00:30 Australia Trade Balance , November billion -0.53 -0.30 -0.12

7:00 Germany Retail sales in November , seasonally adjusted -0.8 % +0.5 % +1.5 %

7:00 Germany Retail sales unadjusted y / y in November -0.1% Revised from -0.2 % +1.6%

7:45 France indicator of consumer confidence in December 84 84 85

8:00 Reserves Switzerland Swiss National Bank in foreign currency billion francs 435.7 435.0 435.2 December

8:55 Germany Changing the number of unemployed December 10 -1 15

8:55 Germany Unemployment seasonally adjusted 6.9 % in December 6.9 % 6.9 %

10:00 Eurozone Producer Price Index m / m in November -0.5% -0.1 % -0.1 %

10:00 Eurozone Producer Price Index y / y in November -1.4 % +1.2 % -1.2 %

10:00 Eurozone CPI y / y (preliminary data ) December +0.9 % +0.9 % +0.7 %

The euro exchange rate rose sharply against the dollar, which was associated with the publication of data on inflation in the euro area , which surprised the experts.

A preliminary report from the EU statistical agency showed that Eurozone annual inflation unexpectedly fell last month , reviving concerns about the fact that it could threaten the " fragile " recovery of the currency bloc .

According to the report , on an annual basis , consumer prices rose by only 0.8 percent in December , compared with an increase of 0.9 per cent per annum in November and expectations at 0.9 percent. Recall that in October, inflation was 0.7 per cent , and this prompted the ECB to lower its benchmark interest rate to the lowest level , namely to 0.25 per cent , to stimulate the economy . ECB seeks to achieve the inflation rate below 2.0 percent.

In addition, data showed that core inflation, which excludes prices for food and energy , was in December, only 0.7 per cent .

"It will be interesting to see whether Mario Draghi will speak about the growing concerns about deflation at the upcoming meeting on Thursday ," said Boris Schlossberg , an analyst BK Asset Management. " Some analysts have hinted that the ECB may consider reducing rates by 10 bps . Clause in the fight against this process ."

The yen traded lower against the dollar as the Bank of Japan reported on the change in the monetary base of the country. Index for December rose by almost 47 % compared with the previous year to a record 193.5 trillion yen ($ 1.85 trillion ) . Recall that the purpose of the Bank of Japan from December 2012 to double the monetary base to 270 trillion yen by the end of this year. Also decline in the yen was associated with operation of stop orders. According to traders , it happened after the Japanese stock market offset losses incurred earlier . Preceded this decline USD / JPY pair has led some investors and importers good opportunity to buy the U.S. currency cheaper.

Pound rose against the dollar , retreating from a session low , which was associated with the release of a report showed that sales of cars in the UK have returned to pre-crisis level of car sales in the UK in 2013 exceeded the 2007 figure . This auto market has become the busiest in Europe thanks to cheap credit and rising consumer confidence.

Car sales last year rose by 10.5% to 2.26 million units . In 2014, experts also predict growth based on sustainable recovery unexpectedly UK. In 2013 , there were only sold by 6% fewer cars than in the pre-crisis 2007 ( 2.4 million ) , and only 300,000 less than a year a historic high . Three-quarters of Britons are buying cars on credit , using the low rates and stimulate the state program .

EUR / USD: during the European session, the pair rose to $ 1.3656

GBP / USD: during the European session, the pair rose to $ 1.6435 , and then retreated slightly

USD / JPY: during the European session, the pair rose to Y104.60, but then fell to Y104.40

At 13:30 GMT , Canada and the United States will report on its trade balance for November. At 15:00 GMT , Canada will release the Ivey PMI index from December .