Foreign exchange market. Asian session: the yen climbed

Economic calendar (GMT0):

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

00:30 Australia Unemployment rate January 5.8% 5.8% 6.0%

00:30 Australia Changing the number of employed January -0.8 Revised From -1.0 15 -7.9

01:30 China PPI y/y January -5.9% -5.4% -5.3%

01:30 China CPI y/y January 1.6% 1.9% 1.8%

This session's key event was the release of China inflation data. The consumer price index rose by 1.8% y/y in January missing expectations for a 1.9% rise. Nevertheless the index picked up pace compared to a reading of 1.6% last December. Meanwhile the producer price index fell by 5.3% y/y marking the 47th month of declines.

The yen climbed against the U.S. dollar on Japanese trade balance data. According to the Ministry of Finance, Japanese trade deficit came in at ¥-645.9 billion in January vs ¥-680 billion expected. Exports fell by 12.9% after an 8.0% decline in December. This was the fourth straight month of declines in exports. Shipping to China fell by 17.5% after an 8.6% drop in December. Imports fell by 18.0% extending the period of declines to 13 months.

The Australian dollar fell amid weak domestic employment data. The unemployment rate rose to 6.0% in January from 5.8% reported previously. The number of employed fell by 7,900, while economists had expected an increase of 15,000. Full time employment fell by 40,600, outweighing a 32,700 increase in part time employment.

EUR/USD: the pair fluctuated within $1.1115-45 in Asian trade

USD/JPY: the pair traded within Y113.80-30

GBP/USD: the pair traded within $1.4270-10

The most important news that are expected (GMT0):

(time / country / index / period / previous value / forecast)

07:00 Switzerland Trade Balance January 2.54 2.67

09:00 Eurozone Current account, unadjusted, bln December 29.8

12:30 Eurozone ECB Monetary Policy Meeting Accounts

13:30 Canada Wholesale Sales, m/m December 1.8% 0.2%

13:30 U.S. Continuing Jobless Claims February 2239 2250

13:30 U.S. Initial Jobless Claims February 269 275

13:30 U.S. Philadelphia Fed Manufacturing Survey February -3.5 -3

15:00 U.S. Leading Indicators January -0.2% -0.2%

16:00 U.S. Crude Oil Inventories February -0.754 4.0