Foreign exchange market. American session: the dollar traded higher against the most major currencies despite the weaker-than-expected U.S. producer price index and consumer sentiment, escalating violence in Iraq weighed on markets

The U.S. dollar traded higher against the most major currencies despite the weaker-than-expected U.S. producer price index and consumer sentiment. The U.S. producer price index decreased 0.2% in May, missing expectations for a 0.1% increase, after a 0.6 rise in April. On a yearly basis, producer price index in the U.S. increased 2.0% in May, after a 2.1% gain in April.

The U.S. producer price index excluding food and energy declined 0.1% in May, missing expectation for a 0.2% rise, after a 0.5% gain in April. On a year-over-year basis, the producer price index excluding food and energy in the U.S. climbed 2.0% in May, after a 1.9% increase in April.

Reuters/Michigan consumer sentiment index for the U.S. fell to 81.2 in June from 81.9 in May, missing expectations for a rise to 83.2.

The euro declined against the U.S. dollar due to escalating violence in Iraq. 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 mixed 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 lower against the U.S. dollar after the weaker-than-expected manufacturing shipments in Canada. The manufacturing shipments in Canada fell 0.1% in April, missing expectations for 0.9% increase, after a 0.4% gain in March.

The New Zealand dollar traded lower against the U.S dollar due to the weaker economic data from New Zealand. The Bank of New Zealand-Business NZ's seasonally adjusted performance of manufacturing index (PMI) was 52.7 in May, after 54.4 in April. Figures above 50 indicates expansion and below 50 contraction.

Business New Zealand executive director for manufacturing Catherine Beard said the lower level of expansion in May was driven by the decreasing number of new orders.

Food prices index in New Zealand increased 0.6% in May. REINZ housing price index climbed 0.1% in May.

Market participants remained unimpressed by the better-than-expected economic data from China. Retail sales in China increased 12.5% in May, exceeding expectations for a 12.3% gain, after a 11.9% rise.

The Chinese industrial production rose 8.8% in May, meeting expectations, after a 8.7% increase.

The Australian dollar traded lower against the U.S. dollar in the absence of any economic reports in Australia.

The Japanese yen declined against the U.S. dollar after the Bank of Japan’s interest decision. The Bank of Japan kept its interest rate unchanged at 0.1%. The BoJ said it will continue to expand the monetary base at a pace of ¥60 trillion to ¥70 trillion per year. This decision was expected by market participants.

The industrial production (final) in Japan decreased 2.8% in April, missing expectations for a 2.5% decline, after a 2.5% decline in March. On a yearly, the Japanese industrial production increased 3.8% in April, missing expectations for a 4.1% gain, after a 4.1% rise in March.