Foreign exchange market. European session: the U.S. dollar traded higher against the most major currencies due to escalating violence in Iraq and ahead of the U.S. producer price index and consumer sentiment

Economic calendar (GMT0):

00:30    New Zealand   REINZ Housing Price Index, m/m      May        +0.1%                +0.1%

03:00    Japan             BoJ Interest Rate Decision                               0.10%   0.10%    +0.1%

03:00    Japan             Bank of Japan Monetary Base Target                270        270         270

03:00    Japan             BoJ Monetary Policy Statement                                                           

04:30    Japan             Industrial Production (YoY) (Finally)   April         +4.1%  +4.1%   +3.8%

04:30    Japan             Industrial Production (MoM) (Finally)  April         -2.5%   -2.5%    -2.8%

05:30    China              Retail Sales y/y                                  May         +11.9% +12.3% +12.5%

05:30    China              Industrial Production y/y                    May          +8.7%  +8.8%   +8.8%

05:30    France            Non-Farm Payrolls (Finally)               Quarter I   -0.1%   -0.1%    -0.1%

06:00    Germany         CPI, m/m (Finally)                              May          -0.1%   -0.1%    -0.1%

06:00    Germany         CPI, y/y (Finally)                                May         +0.9%  +0.9%   +0.9%

07:30    Japan             BOJ Press Conference                                              

09:00    Eurozone        Employment Change                          Quarter I    +0.1%  +0.1%   +0.1%

09:00    Eurozone        Trade Balance s.a.                             April           15.2      15.9       15.8

The U.S. dollar traded higher against the most major currencies due to escalating violence in Iraq and ahead of the U.S. producer price index and consumer sentiment. The U.S. producer price index should climbs 0.1% in May, after a 0.6 rise in April. The U.S. producer price index excluding food and energy should rise 0.2% in May, after a 0.5% gain in April.

Reuters/Michigan consumer sentiment index for the U.S. should increase to 83.2 in June from 81.9 in May.

The euro declined against the U.S. dollar. Eurozone’s trade balance surplus decreased to 15.7 billion euro in April from a surplus of 16.7 billion euro in March. March’s figure was revised down from a surplus of 17.1 billion to +16.7 billion. Analysts had expected a surplus of 16.3 billion euro.

The number of persons employed in the Eurozone climbed by 0.1% in the first quarter.

German final consumer price index increased 0.9% in May, meeting expectations.

French final consumer price index decreased 0.1% in May, as expected.

The British pound traded higher against the U.S. dollar. The British currency was supported by the yesterday’s comments of the Bank of England (BoE) Governor Mark Carney. He said the BoE may raise its key interest rate earlier than investors expected.

The Canadian dollar traded slightly lower against the U.S. dollar ahead of the manufacturing shipments in Canada. The manufacturing shipments in Canada should rise 0.9% in April, after a 0.4% gain in March.

EUR/USD: the currency pair declined to $1.3529

GBP/USD: the currency pair climbed to $1.6991

USD/JPY: the currency pair traded mixed

The most important news that are expected (GMT0):

12:30    Canada  Manufacturing Shipments (MoM)                                          April     +0.4%  +0.9% 

12:30    U.S.       PPI, m/m                                                                                May     +0.6%  +0.1% 

12:30    U.S.       PPI, y/y                                                                                  May     +2.1%                

12:30    U.S.       PPI excluding food and energy, m/m                                      May     +0.5%  +0.2% 

12:30    U.S.       PPI excluding food and energy, Y/Y                                       May     +1.9%                

13:55    U.S.       Reuters/Michigan Consumer Sentiment Index (Preliminary)   June      81.9      83.2