Foreign exchange market. European session: the euro traded declined against the U.S. dollar due to speculation that the Fed will raise interest rates much earlier than the European Central Bank

Economic calendar (GMT0):

(Time/ Region/ Event/ Period/ Previous/ Forecast/ Actual)

00:30 Australia Leading Index June +0.1% -0.1%

04:30 Japan All Industry Activity Index, m/m June +0.6% -0.2% -0.4%

06:00 Germany Producer Price Index (MoM) July 0.0% +0.1% -0.1%

06:00 Germany Producer Price Index (YoY) July -0.7% -0.8%

08:30 United Kingdom Bank of England Minutes

10:00 United Kingdom CBI industrial order books balance August 2 4 11

The U.S. dollar traded higher against the most major currencies ahead of the FOMC's minutes. Market participants are awaiting the release of the FOMC minutes later in the day.

The greenback remained supported by yesterday's strong U.S. housing market data. Housing starts in the U.S. jumped 15.7% to 1.093 million units in July from 945,000 units in June. That was the strongest rate since November.

The number of building permits rose by 8.1% to 1.052 million units in July from 973,000 in June.

Investors also speculate that the Fed will raise interest rates much earlier than the European Central Bank.

The euro traded declined against the U.S. dollar due to speculation that the Fed will raise interest rates much earlier than the European Central Bank.

German producer price index decreased 0.1% in July, missing expectations for a 0.1% rise, after 0.0% in June.

On a yearly basis, German producer price index fell 0.8% in July, after a 0.7% drop in June.

The British pound rose against the U.S. dollar after the Bank of England's minutes. The Bank of England (BoE) released the minutes of its August meeting. Two members of the BoE's Monetary Policy Committee unexpectedly voted to hike interest rate to 0.75% from 0.5%. Other seven members voted to keep interest rate on hold. That was the first split in more than three years.

The Confederation of British Industry released its industrial order books balance. The CBI industrial order books balance jumped to +11% in August from +2% in July, exceeding expectations for a climb to +4%.

The Canadian dollar traded mixed against the U.S. dollar ahead of Canadian wholesale sales. Canadian wholesale sales are expected to increase 1.3% in June, after a 2.2% gain in May.

EUR/USD: the currency pair fell to $1.3274

GBP/USD: the currency pair rose to $1.6678

USD/JPY: the currency pair increase to Y103.41

The most important news that are expected (GMT0):

12:30 Canada Wholesale Sales, m/m June +2.2% +1.3%

18:00 U.S. FOMC meeting minutes