Foreign exchange market. European session: the euro traded lower against the U.S. dollar

Economic calendar (GMT0):

03:20    Australia   RBA Assist Gov Kent Speaks                                                  

05:00    Japan       BoJ monthly economic report         June

09:00    Eurozone   Harmonized CPI                             May       +0.2%  -0.1%    -0.1%

09:00    Eurozone   Harmonized CPI, Y/Y (Finally)         May       +0.5%  +0.5%   +0.5%

09:00    Eurozone   Harmonized CPI ex EFAT, Y/Y        May       +0.7%  +0.7%   +0.7%

The U.S. dollar traded higher against the most major currencies ahead of the release of economic reports in the U.S.  The U.S. currency was supported by concerns over escalating violence in Iraq.

The euro traded lower against the U.S. dollar. Eurozone’s harmonized consumer price index declined 0.1% in May, meeting expectations, after a 0.2% gain in April. On a yearly basis, harmonized consumer price index in the Eurozone climbed 0.5%, as expected.

The core inflation (excluding energy and food) in the Eurozone rose 0.7%, in line with forecasts.

The British pound traded lower against the U.S. dollar, but remained supported by the last week’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 dropped against the U.S. dollar ahead of the foreign securities purchases in Canada. The foreign securities purchases in Canada should rise to 4.27 billion CAD in April, after -1.23 billion CAD in March.

EUR/USD: the currency pair declined to $1.3511

GBP/USD: the currency pair decreased to $1.6958

USD/JPY: the currency pair traded mixed

The most important news that are expected (GMT0):

12:30    Canada        Foreign Securities Purchases                       April      -1.23     4.27     

12:30    U.S.             NY Fed Empire State manufacturing index     June      19.0      15.2     

13:00    U.S.             Net Long-term TIC Flows                                April      4.0         41.3     

13:00    U.S.             Total Net TIC Flows                                         April      -126.1                

13:15    U.S.             Industrial Production (MoM)                            May       -0.6%   +0.6% 

13:15    U.S.             Capacity Utilization                                          May       78.6%   78.9%  

14:00    U.S.             NAHB Housing Market Index                            June      45          47