The U.S. dollar traded lower against the most major currencies after the weaker-than-expected U.S. factory orders. Factory orders in the U.S. dropped 3.4% in December, missing expectations for a 1.8% decrease, after a 1.7% decline in November. That was the fifth straight decline.

November's figure was revised down from a 0.7% fall.

Manufacturing in the U.S. is cooling due to weak global demand and falling oil prices.

The euro rose against the U.S. dollar as the new Greece government outlined its plans to renegotiate the terms of its bailout, retreating from demands for a debt haircut. Greek Finance Minister Yanis Varoufakis has proposed debt swaps.

Eurozone's producer price index dropped 1.0% in December, missing expectations for a 0.7% decrease, after a 0.4% decline in November.

The British pound traded higher against the U.S. dollar. Markit's and the Chartered Institute of Purchasing & Supply's construction purchasing managers' index (PMI) for the U.K. rose to 59.1 in January from 57.6 in December, beating expectations for a decline to 56.9.

The Canadian dollar traded higher against the U.S. dollar despite the weaker-than-expected Canadian raw materials purchase price index. The Raw Materials Price Index (RMPI) dropped 7.6% in December, missing expectations for a 4.6% fall, after a 5.7% decline in November. November's figure was revised up from a 5.8% decrease.

The drop was driven by lower prices for crude energy products.

The Swiss franc traded higher against the U.S. dollar. Switzerland's trade surplus narrowed to CHF1.5 billion in December from CHF3.8 billion in November.

Exports rose 7.2% in December, while imports declined 0.2%.

The New Zealand dollar increased against the U.S. dollar. In the overnight trading session, the kiwi fell against the greenback in the absence of any major economic reports from New Zealand. The interest rate cut by the Reserve Bank of Australia (RBA) weighed on the kiwi.

The Australian dollar traded higher against the U.S. dollar. In the overnight trading session, the Aussie dropped against the greenback as the RBA cut its interest rate to a new record low of 2.25%, down from 2.50%. The RBA said that the Aussie remains overvalued.

The RBA Governor Glenn Stevens said in a statement that the Australian dollar remains "above most estimates of its fundamental value", despite the recent decline. He pointed out that a lower exchange rate is needed "to achieve balanced growth in the economy".

Australia's trade deficit narrowed to A$0.44 billion in December from A$1.02 billion in November. November's figure was revised down from a deficit of A$0.93 billion. Analysts had expected the trade deficit to decrease to A$0.85 billion.

Exports increased 1.0% in December, while imports declined 1.0%.

Building approvals in Australia declined 3.3% in December, beating expectations for a 4.8% decline, after a 7.7% increase in November. November's figure was revised up from a 7.5% gain.

The Japanese yen traded lower against the U.S. dollar. In the overnight trading session, the yen traded higher against the greenback. Japan's monetary base increased 37.4% in January, missing expectations for a 40.1% rise, after a 38.2% gain in December.

The Swiss Federal Customs Administration released its trade data figures for Switzerland on Tuesday. Switzerland's trade surplus narrowed to CHF1.5 billion in December from CHF3.8 billion in November.

Exports rose 7.2% in December, while imports declined 0.2%.

For 2014 as whole, Switzerland's trade surplus increased to a record high of CHF30.0 billion in 2014 from CHF23.6 billion in 2013.

The increase was led by a 3.5% rise in exports, driven by pharmaceuticals, chemicals and watches. Imports declined 0.4% in 2014.

The U.S. Commerce Department released factory orders data on Tuesday. Factory orders in the U.S. dropped 3.4% in December, missing expectations for a 1.8% decrease, after a 1.7% decline in November. That was the fifth straight decline.

November's figure was revised down from a 0.7% fall.

Manufacturing in the U.S. is cooling due to weak global demand and falling oil prices.

Factory orders excluding transportation fell 2.3% in December, the biggest decline since March 2013.

The Reserve Bank of Australia (RBA) released its interest rate decision on Tuesday. The RBA cut its interest rate to a new record low of 2.25%, down from 2.50%. The RBA said that the Aussie remains overvalued.

The RBA Governor Glenn Stevens said in a statement that Australia's economy grows below trend, and domestic demand growth is overall weak. He noted that the unemployment rate increased over the past year.

Stevens pointed out that the central bank expects that "output growth will probably remain a little below trend for somewhat longer, and the rate of unemployment peak a little higher, than earlier expected".

The RBA governor also said that the inflation in Australia showed the lowest rise for several years in 2014, driven by falling oil prices at the end of the year and the removal of the price on carbon.

Stevens noted that the Australian dollar remains "above most estimates of its fundamental value", despite the recent decline. He pointed out that a lower exchange rate is needed "to achieve balanced growth in the economy".

Statistics Canada released its industrial product and raw materials price indexes on Tuesday. The Industrial Product Price Index (IPPI) dropped 1.6% in December, missing forecasts for a 0.3% increase, after a 0.5% decrease in November. November's figure was revised down from a 0.4% decline.

That was the fourth straight monthly fall and the biggest decline since December 2008.

The decline was driven by lower prices for energy and petroleum products.

The Raw Materials Price Index (RMPI) dropped 7.6% in December, missing expectations for a 4.6% fall, after a 5.7% decline in November. November's figure was revised up from a 5.8% decrease.

That was the sixth straight monthly decline.

The drop was driven by lower prices for crude energy products.

EUR/USD: $1.1200-10(E520mn), $1.1300(E552mn), $1.1400 (E270mn)

USD/JPY: Y115.00($5.0bn), Y116.00($9.5bn), Y116.45-50($1.5bn), Y117.00($848mn), Y118.00($3.05bn), Y118.30-40($1.5bn), Y119.00($1.7bn)

AUD/USD: $0.7750(A$470mn), $0.7800(A$691mn), $0.7900(A$677mn), $0.8000(A$230mn)

NZD/USD: $0.7300(NZ$200mn), $0.7350(NZ$201mn), $0.7390(NZ$259mn), $0.7400(NZ$367mn)

USD/CAD: C$1.2400($270mn)

EUR/USD

Offers $1.1500, $1.1450/60, $1.1400, $1.1380/85

Bids $1.1260, $1.1220, $1.1200, $1.1100

GBP/USD

Offers $1.5200, $1.5145/50, $1.5115, $1.5100

Bids $1.4955, $1.4900

AUD/USD

Offers $0.7900, $0.7850, $0.7830, $0.7800, $0.7700

Bids $0.7600, $0.7500

EUR/JPY

Offers Y135.00, Y134.45/50, Y133.90

Bids Y132.20, Y132.00, Y130.15

USD/JPY

Offers Y119.00, Y118.50, Y118.00

Bids Y116.90, Y116.50, Y115.85

EUR/GBP

Offers stg0.7715, stg0.7700, stg0.7600

Bids stg0.7490, stg0.7440, stg0.7400

Economic calendar (GMT0):

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

00:30 Australia Building Permits, m/m December +7.7% Revised From +7.5% -4.8% -3.3%

00:30 Australia Building Permits, y/y December +10.1% +8.8%

00:30 Australia Trade Balance December -1.02 Revised From -0.93 -0.85 -0.44

03:30 Australia Announcement of the RBA decision on the discount rate 2.50% 2.50% 2.25%

03:30 Australia RBA Rate Statement

07:00 Switzerland Trade Balance December 3.87 1.5

09:30 United Kingdom PMI Construction January 57.6 56.9 59.1

10:00 Eurozone Producer Price Index, MoM December -0.4% -0.7% -1.0%

10:00 Eurozone Producer Price Index (YoY) December -1.6% -2.7%

The U.S. dollar traded mixed against the most major currencies ahead of the U.S. factory orders. Factory orders in the U.S. are expected to decline 1.8% in December, after a 0.7% drop in November.

The euro traded mixed against the U.S. dollar after the producer price index from the Eurozone. Eurozone's producer price index dropped 1.0% in December, missing expectations for a 0.7% decrease, after a 0.4% decline in November.

The British pound traded higher against the U.S. dollar after the better-than-expected construction PMI from the U.K. Markit's and the Chartered Institute of Purchasing & Supply's construction purchasing managers' index (PMI) for the U.K. rose to 59.1 in January from 57.6 in December, beating expectations for a decline to 56.9.

The Canadian dollar traded higher against the U.S. dollar ahead of Canadian raw materials purchase price index. Canada's raw materials purchase price index is expected to decline 4.6% in December, after a 5.8% drop in November.

EUR/USD: the currency pair traded mixed

GBP/USD: the currency pair rose to $1.5081

USD/JPY: the currency pair increased to Y117.53

The most important news that are expected (GMT0):

13:30 Canada Raw Material Price Index December -5.8% -4.6%

15:00 U.S. Factory Orders December -0.7% -1.8%

21:45 New Zealand Employment Change, q/q Quarter IV +0.8% +0.8%

21:45 New Zealand Unemployment Rate Quarter IV 5.4% 5.3%

23:00 New Zealand RBNZ Governor Graeme Wheeler Speaks

The Australian Bureau of Statistics released its trade date on Tuesday. Australia's trade deficit narrowed to A$0.44 billion in December from A$1.02 billion in November. November's figure was revised down from a deficit of A$0.93 billion. Analysts had expected the trade deficit to decrease to A$0.85 billion.

Exports increased 1.0% in December, while imports declined 1.0%.

For 2014 as whole, Australia's trade deficit narrowed to A$9.9 billion from A$10.3 billion in 2013. Exports climbed 2% in 2014, while imports were up 2%.

EUR/USD: $1.1200-10(E520mn), $1.1300(E552mn), $1.1400 (E270mn)

USD/JPY: Y115.00($5.0bn), Y116.00($9.5bn), Y116.45-50($1.5bn), Y117.00($848mn), Y118.00($3.05bn), Y118.30-40($1.5bn), Y119.00($1.7bn)

AUD/USD: $0.7750(A$470mn), $0.7800(A$691mn), $0.7900(A$677mn), $0.8000(A$230mn)

NZD/USD: $0.7300(NZ$200mn), $0.7350(NZ$201mn), $0.7390(NZ$259mn), $0.7400(NZ$367mn)

USD/CAD: C$1.2400($270mn)

Activity in the construction sector rose more-than-expected in January data showed on Tuesday. After the lowest reading in 17 months in December the index climbed from 57.6 points to 59.1 points, beating forecasts predicting a decline to 56.9. A reading of above 50 indicates expansion of the sector.

The British pound is trading lower against the greenback despite the upbeat data currently quoted at 1.5028 after hitting lows at 1.4988 today.

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

00:30 Australia Building Permits, m/m December +7.5% -4.8% -3.3%

00:30 Australia Building Permits, y/y December +10.1% +8.8%

00:30 Australia Trade Balance December -0.93 -0.85 -0.44

03:30 Australia Announcement of the RBA decision on the discount rate 2.50% 2.50% 2.25%

03:30 Australia RBA Rate Statement

07:00 Switzerland Trade Balance December 3.87 1.5

The U.S. dollar traded mixed higher against the most major currencies, except the Japanese yen, recovering from declines after the mostly weaker-than-expected U.S. economic data yesterday. The Institute for Supply Management's manufacturing purchasing managers' index for the U.S. declined to 53.5 in January from 55.5 in December, missing expectations for a decline to 54.9. The data added to concerns over the economic outlook of the U.S. after data showed that the world's biggest economy expanded at a slower pace in the fourth quarter, growing at 2.6%. The greenback traded almost flat against the euro as there is hope that the new Greek government will reach a compromise on the terms of its bailout.

The Australian dollar slumped more than 1% to a six-year low after the Reserve Bank of Australia cut benchmark interest rates unexpectedly to a record low to 2.25% by 25 basis points at its policy meeting in order to support the economy and to keep the aussie low. Reserve Bank of Australia Governor Glenn Stevens said in a statement in a statement that lower interest rates are expected to add some further support to demand, help to achieve sustainable growth and to assure that inflation is consistent with the target. Earlier data on Australia's Trade Balance rose more than expected to a -0.44 billion from -1.02 billion in the previous month. Analysts expected -0.85 billion. Building Permits declined less-than-expected by 3.3% compared to a forecast of -4.8% in December. Data for November was revised to +7.7%. On a yearly basis Building Permits rose less with +8.8% compared to +10.1%.

New Zealand's dollar against fell sharply against the greenback in Asian trade continuing a recent slide. The kiwi lost 6% against the U.S. dollar in January. The Reserve Bank of New Zealand opened the door for a possible rate cut at its policy meeting on Wednesday. Today a set of data is due including Employment Change, the Unemployment rate and late in the day RBNZ Governor Graeme Wheeler Speaks.

The Japanese yen traded higher against the greenback on Tuesday as shares declined and investors sought a safe haven. Japan's Monetary Base rose less-than-expected by +37.4%. Economists predicted an increase by +40.1%.

EUR/USD: the euro traded almost flat against the greenback

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

09:30 United Kingdom PMI Construction January 57.6 56.9

10:00 Eurozone Producer Price Index, MoM December -0.4% -0.7%

10:00 Eurozone Producer Price Index (YoY) December -1.6%

13:30 Canada Industrial Product Prices, m/m December -0.4% +0.3%

13:30 Canada Raw Material Price Index December -5.8% -4.6%

15:00 U.S. Factory Orders December -0.7% -1.8%

19:30 U.S. Total Vehicle Sales, mln January 16.9 17.0

21:30 U.S. API Crude Oil Inventories January +12.7

21:45 New Zealand Employment Change, q/q Quarter IV +0.8% +0.8%

21:45 New Zealand Unemployment Rate Quarter IV 5.4% 5.3%

22:30 Australia AIG Services Index January 47.5

23:00 New Zealand RBNZ Governor Graeme Wheeler Speaks

EUR / USD

Resistance levels (open interest**, contracts)

$1.1520 (3280)

$1.1447 (3418)

$1.1396 (1839)

Price at time of writing this review: $1.1328

Support levels (open interest**, contracts):

$1.1254 (3212)

$1.1182 (4325)

$1.1139 (2680)

Comments:

- Overall open interest on the CALL options with the expiration date February, 6 is 86203 contracts, with the maximum number of contracts with strike price $1,2100 (6527);

- Overall open interest on the PUT options with the expiration date February, 6 is 78278 contracts, with the maximum number of contracts with strike price $1,1700 (6670);

- The ratio of PUT/CALL was 0.91 versus 0.92 from the previous trading day according to data from February, 2

GBP/USD

Resistance levels (open interest**, contracts)

$1.5301 (669)

$1.5202 (1254)

$1.5104 (922)

Price at time of writing this review: $1.5017

Support levels (open interest**, contracts):

$1.4994 (1071)

$1.4897 (1911)

$1.4799 (1200)

Comments:

- Overall open interest on the CALL options with the expiration date February, 6 is 17610 contracts, with the maximum number of contracts with strike price $1,5200 (1254);

- Overall open interest on the PUT options with the expiration date February, 6 is 17529 contracts, with the maximum number of contracts with strike price $1,4900 (1911);

- The ratio of PUT/CALL was 0.99 versus 1.00 from the previous trading day according to data from February, 2

* - The Chicago Mercantile Exchange bulletin (CME) is used for the calculation.

** - Open interest takes into account the total number of option contracts that are open at the moment.

(pare/closed(GMT +2)/change, %)

EUR/USD $1,1340 +0,36%

GBP/USD $1,5038 -0,15%

USD/CHF Chf0,9278 +1,06%

USD/JPY Y117,55 +0,13%

EUR/JPY Y133,35 +0,52%

GBP/JPY Y176,78 -0,01%

AUD/USD $0,7802 +0,26%

NZD/USD $0,7304 +0,27%

USD/CAD C$1,2562 -1,16%

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

00:30 Australia Building Permits, m/m December +7.5% -4.8%

00:30 Australia Building Permits, y/y December +10.1%

00:30 Australia Trade Balance December -0.93 -0.85

03:30 Australia Announcement of the RBA decision on the discount rate 2.50% 2.50%

03:30 Australia RBA Rate Statement

07:00 Switzerland Trade Balance December 3.87

09:30 United Kingdom PMI Construction January 57.6 56.9

10:00 Eurozone Producer Price Index, MoM December -0.4% -0.7%

10:00 Eurozone Producer Price Index (YoY) December -1.6%

13:30 Canada Industrial Product Prices, m/m December -0.4% +0.3%

13:30 Canada Raw Material Price Index December -5.8% -4.6%

15:00 U.S. Factory Orders December -0.7% -1.8%

19:30 U.S. Total Vehicle Sales, mln January 16.9 17.0

21:30 U.S. API Crude Oil Inventories January +12.7

21:45 New Zealand Employment Change, q/q Quarter IV +0.8% +0.8%

21:45 New Zealand Unemployment Rate Quarter IV 5.4% 5.3%

22:30 Australia AIG Services Index January 47.5

23:00 New Zealand RBNZ Governor Graeme Wheeler Speaks