Foreign exchange market. European session: the euro fell against the U.S. dollar after consumer price inflation from the Eurozone

Economic calendar (GMT0):

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

07:00 Germany CPI, m/m (Finally) December 0.0% 0.0% 0.0%

07:00 Germany CPI, y/y (Finally) December +0.2% +0.2% +0.2%

08:15 Switzerland Retail Sales Y/Y November +0.3% +1.1% -1.2%

10:00 Eurozone Harmonized CPI (Finally) December -0.2% -0.2% -0.1%

10:00 Eurozone Harmonized CPI, Y/Y (Finally) December -0.2% -0.2% -0.2%

10:00 Eurozone Harmonized CPI ex EFAT, Y/Y (Finally) December +0.8% +0.8% +0.7%

The U.S. dollar traded mixed to higher against the most major currencies ahead of the U.S. economic data. The U.S. consumer price inflation is expected to decline 0.3% in December, after a 0.3% drop in November.

The U.S. consumer price index excluding food and energy is expected to rise 0.1% in December, after a 0.1% gain in November.

The U.S. industrial production is expected to rise 0.1% in December, after a 1.3% increase in November.

The euro fell against the U.S. dollar after consumer price inflation from the Eurozone. Eurozone's consumer price index dropped 0.1% in December, beating expectations for a 0.2% decline, after a 0.2% decrease in November.

On a yearly basis, Eurozone's consumer price inflation remained unchanged at 0.2% in December, in line with expectations.

Eurozone's consumer price inflation excluding food, energy, alcohol and tobacco declined to an annual rate of 0.7% in December from 0.8% in November. Analysts had expected inflation to remain unchanged.

Germany's final consumer price index was flat in December, in line with expectations.

On a yearly basis, German final consumer price index remained at 0.2% in December, in line with expectations.

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

The Swiss franc traded mixed against the U.S. dollar. Retail sales in Switzerland decreased at an annual rate of 1.2% in November, missing expectations for a 1.1% rise, after a 0.3% gain in October.

The Swiss Franc plunged against the greenback yesterday as the Swiss National Bank announced today that it will discontinue the 1.20 per euro exchange rate floor. But the SNB added that will remain active in the foreign exchange market.

EUR/USD: the currency pair declined to $1.1575

GBP/USD: the currency pair traded mixed

USD/JPY: the currency pair rose to $116.76

The most important news that are expected (GMT0):

13:30 U.S. CPI, m/m December -0.3% -0.3%

13:30 U.S. CPI, Y/Y December +1.3% +1.0%

13:30 U.S. CPI excluding food and energy, m/m December +0.1% +0.1%

13:30 U.S. CPI excluding food and energy, Y/Y December +1.7% +1.7%

14:15 U.S. Industrial Production (MoM) December +1.3% +0.1%

14:15 U.S. Capacity Utilization December 80.1% 80.2%

14:55 U.S. Reuters/Michigan Consumer Sentiment Index (Preliminary) January 93.6 94.2