Foreign exchange market. American session: the euro increased against the U.S. dollar due to speculation the European Central Bank will not add further stimulus measures

The U.S. dollar traded mixed against the most major currencies after the economic reports in the U.S. The lowering forecast of the U.S. economic growth by the International Monetary Fund (IMF) weighed on the U.S. The IMF expects the U.S. economy to grow 2% in 2014, down from its forecast of 2.8% in April.

On the other side, the U.S. currency was supported by concerns over escalating violence in Iraq and the better-than-expected economic data.

The NAHB housing market index in the U.S. increased to 49 in June from 45 in May, exceeding expectations for a gain to 47.

The capacity utilisation in U.S. climbed to 79.1% in May from 78.6% in April, beating expectations for a rise to 78.9%.

The U.S. industrial production rose a seasonally adjusted 0.6% in April, in line with forecasts, after a 0.6% decline in March.

NY Fed Empire State manufacturing index increased to 19.3 in June from 19.0 in May, exceeding expectations from a decline to 15.2.

The euro increased against the U.S. dollar due to speculation the European Central Bank will not add further stimulus measures.

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 rose to 10.13 billion CAD in April, exceeding expectations for a gain to 4.27, after -1.41 billion CAD in March.

The New Zealand dollar traded mixed against the U.S dollar. The Westpac index of consumer sentiment for Q2 declined to 121.2 from 121.7 the previous quarter.

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

The Reserve Bank of Australia Assistant Governor Christopher Kent said today that the unemployment rate in Australia will remain elevated for the next two years. He added moderate wage growth and better productivity should help the economy. Mr. Kent also pointed out “a decline in the real exchange rate is one important way in which the economy can adjust to the decline in the terms of trade”.

The Japanese yen mixed against the U.S. dollar. The yen was supported by the increasing demand for safe-haven currency. The increasing demand for safe-haven currency was driven by escalating violence in Iraq. No economic reports were released in Japan.

The Bank of Japan (BoJ) released its monthly economic report. The BoJ said Japan's economy has continued to recover moderately as a trend, but there is a decline in demand following caused by the consumption tax hike.