Foreign exchange market. European session: the euro fell against the U.S. dollar after the weaker-than-expected inflation data from the Eurozone

Economic calendar (GMT0):

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

07:00 Germany Retail sales, real adjusted November +2.0% Revised From +1.9% +0.2% +1.0%

07:00 Germany Retail sales, real unadjusted, y/y November +2.1% Revised From +1.7% -0.8%

08:00 Switzerland Foreign Currency Reserves December 462.4 495.1

08:55 Germany Unemployment Change December -16 -6 -27

08:55 Germany Unemployment Rate s.a. December 6.6% 6.6% 6.5%

10:00 Eurozone Unemployment Rate November 11.5% 11.5% 11.5%

10:00 Eurozone Harmonized CPI, Y/Y (Preliminary) December +0.3% 0.0% -0.2%

The U.S. dollar traded mixed to higher against the most major currencies ahead of the U.S. economic data. The U.S. economy is expected to add 227,000 jobs in December, according to the ADP employment report.

The U.S. trade deficit is expected to narrow to $42.3 billion in November from $43.4 billion in October.

The Fed will release minutes of its last meeting. Investors expect signs when the Fed will start to hike its interest rate.

The euro fell against the U.S. dollar after the weaker-than-expected inflation data from the Eurozone. The inflation declined to an annual rate of -0.2% in December from 0.3% in November. That was the lowest level since October 2009. Analysts had expected a flat reading.

The decline was driven by falling oil prices.

The inflation excluding food and energy costs increased to an annual rate of 0.8% in December from 0.7% in November.

These figures are adding to pressure on the ECB. Investors speculate that the European Central Bank could decide on its policy meeting on January 22 to purchase government bonds.

Eurozone's unemployment rate remained unchanged at 11.5% in November, in line with expectations.

The number of unemployed people in Germany declined by 27,000 in December, beating expectations for a 6,000 decline, after a 16,000 drop in November. November's figure was revised up from a 14,000 decrease.

Germany's adjusted unemployment rate fell to 6.5% in December from 6.6% in November. Analysts had expected the unemployment rate to remain unchanged.

German adjusted retail sales climbed 1.0% in November, exceeding expectations for a 0.2% rise, after a 2.0% gain in October. October's figure was revised up from a 1.9% increase.

Political uncertainty in Greece still weighed on the euro.

The British pound traded mixed against the U.S. dollar in the absence of any major economic reports from the U.K.

The Canadian dollar traded mixed against the U.S. dollar ahead of Canadian economic data. The Canadian trade surplus of C$0.1 billion in October is expected to narrow to a deficit of C$0.2 billion in November.

The Ivey purchasing managers' index is expected to drop to 52.3 in December from 56.9 in November.

The Swiss franc traded lower against the U.S. dollar. The Swiss National Bank's foreign exchange reserves increased to 495.104 billion Swiss francs in December from 462.669 billion francs in November.

EUR/USD: the currency pair declined to $1.1818

GBP/USD: the currency pair traded mixed

USD/JPY: the currency pair rose to Y119.34

The most important news that are expected (GMT0):

13:15 U.S. ADP Employment Report December 208 227

13:30 Canada Trade balance, billions November 0.1 -0.2

13:30 U.S. International Trade, bln November -43.4 -42.3

15:00 Canada Ivey Purchasing Managers Index December 56.9 52.3

19:00 U.S. FOMC meeting minutes

23:30 U.S. FOMC Member Charles Evans Speaks