The European Central Bank (ECB) Governing Council member Ewald Nowotny told Austrian newspaper Der Standard in an interview published on Tuesday that the ECB should decide sooner rather than later whether to start purchases of government bonds.

Nowotny said that the ECB "should provide clarity over its strategy as soon as possible".

Investors speculate that the European Central Bank could decide on its policy meeting on January 22 to purchase government bonds.

The U.S. dollar traded mixed against the most major currencies after the better-than-expected U.S. job openings figures. Job openings climbed to 4.972 million in November from 4.830 million in October. October's figure was revised down from 4.834 million. Analysts had expected job openings to rise to 4.848 million.

The euro traded mixed against the U.S. dollar in the absence of any major economic reports from the Eurozone. Political uncertainty in Greece and inflation data from the Eurozone still weighed on the euro.

Investors speculate that the European Central Bank could decide on its policy meeting on January 22 to purchase government bonds.

The British pound traded higher against the U.S. dollar, recovering its losses after the weaker-than-expected consumer price inflation from the U.K. The U.K. consumer price index declined to an annual rate of 0.5% in December from 1.0% in November. That was the lowest level since May 2000. Analysts had expected the consumer price inflation to decrease to 0.7%.

On monthly basis, consumer price inflation in the U.K. was flat in December, missing forecasts of a 0.1% rise, after a 0.3% decline in November.

Consumer price inflation excluding food, energy, alcohol, and tobacco increased to an annual rate of 1.3% in November from 1.2% in November. Analysts had expected the consumer inflation to climb to 1.4%.

The Bank of England's inflation target is about 2%.

Investors speculate that Bank of England will keep interest rates on hold for a longer period.

The Bank of England Governor Mark Carney said in an interview with the BBC on Tuesday that he expects inflation to decline in coming months, but he believes inflation will be near the central bank's 2% target within two years.

Carney noted that interest rate hike is still possible, but future increases will be "a little more gradual and limited" now.

The New Zealand dollar traded lower against the U.S. dollar in the absence of any major economic reports from New Zealand. Falling oil prices weigh on the kiwi.

The Australian dollar traded higher against the U.S. dollar. In the overnight trading session, the Aussie traded lower against the greenback in the absence of any major economic reports from Australia. Falling oil prices weigh on the Aussie.

The Japanese yen traded higher against the U.S. dollar. In the overnight trading session, the yen traded mixed against the greenback after the better-than-expected economic data from Japan. Japan's adjusted current account surplus declined to 433.0 billion yen in November from 883.4 billion yen in October, beating expectations for a fall to 133.2 billion yen.

Japan's economy watchers' current conditions index rose to 45.2 in December from 41.5 in November, exceeding expectations for an increase to 44.3.

Japan's economy watchers' future conditions index climbed to 46.7 in December from 44.0 in November.

The U.S. Bureau of Labor Statistics released its Job Openings and Labor Turnover Survey (JOLTS) report on Tuesday. Job openings climbed to 4.972 million in November from 4.830 million in October. October's figure was revised down from 4.834 million.

Analysts had expected job openings to rise to 4.848 million.

The number of job openings was little changed for total private (4.5 million), while increased for government (459,000) in November.

The hires rate was 3.6% in November, unchanged from October.

Total separations fell to 4.623 million in November from 4.863 million in October.

The JOLTS report is one of the Federal Reserve Chair Janet Yellen's favourite labour market indicators.

The European Central Bank (ECB) executive board member Benoit Coeure told German newspaper Die Welt that the central bank has discussed about whether to implement a sovereign bond-buying programme last week. He noted that the ECB could take a decision on its policy meeting on January 22.

Coeure pointed out that Greece's parliament election on January 25 would not influence the ECB's monetary policy. He added that Greece had "a large interest to remain a member of the euro and to push on with the reforms".

Coeure said that "falling oil price strengthens the risk in the current environment that people lose trust in our inflation goal".

EUR/USD: $1.1825(E253mn), $1.1850(E504mn), $1.1890(E269mn), $1.1925(E585mn)

USD/JPY: Y118.50($250mn), Y119.00($366mn), Y119.50($630mn)

EUR/GBP: Stg0.7800(E300mn)

AUD/USD: $0.8090(A$630mn), $0.8150(A$1.2bn), $0.8250(A$1.5bn)

The Bank of England Governor Mark Carney said in an interview with the BBC on Tuesday that he expects inflation to decline in coming months, but he believes inflation will be near the central bank's 2% target within two years.

Carney noted that interest rate hike is still possible, but future increases will be "a little more gradual and limited" now.

According to official data on Tuesday, the U.K. consumer price index declined to an annual rate of 0.5% in December from 1.0% in November, the lowest level since May 2000.

Economic calendar (GMT0):

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

00:01 United Kingdom BRC Retail Sales Monitor y/y December +0.9% -0.4%

02:00 China Trade Balance, bln December 54.50 49.85 49.61

05:00 Japan Eco Watchers Survey: Current December 41.5 44.3 45.2

05:00 Japan Eco Watchers Survey: Outlook December 44.0 46.7

09:30 United Kingdom Retail Price Index, m/m December -0.2% +0.2% +0.2%

09:30 United Kingdom Retail prices, Y/Y December +2.0% +1.6% +1.6%

09:30 United Kingdom Producer Price Index - Input (MoM) December -1.0% +0.3% -2.4%

09:30 United Kingdom Producer Price Index - Input (YoY) December -8.8% -12.2% -10.7%

09:30 United Kingdom Producer Price Index - Output (MoM) December -0.2% Revised From +0.2% -0.4% -0.3%

09:30 United Kingdom Producer Price Index - Output (YoY) December -0.6% Revised From -0.1% -0.6% -0.8%

09:30 United Kingdom HICP, m/m December -0.3% +0.1% 0.0%

09:30 United Kingdom HICP, Y/Y December +1.0% +0.7% +0.5%

09:30 United Kingdom HICP ex EFAT, Y/Y December +1.2% +1.4% +1.3%

The U.S. dollar traded mixed to higher against the most major currencies ahead of the U.S. job openings figures. Job openings are expected to rise to 4.85 million in November from 4.83 million in October.

The euro declined against the U.S. dollar in the absence of any major economic reports from the Eurozone. Political uncertainty in Greece and inflation data from the Eurozone still weighed on the euro.

Investors speculate that the European Central Bank could decide on its policy meeting on January 22 to purchase government bonds.

The British pound traded higher against the U.S. dollar, recovering its losses after the weaker-than-expected consumer price inflation from the U.K. The U.K. consumer price index declined to an annual rate of 0.5% in December from 1.0% in November. That was the lowest level since May 2000. Analysts had expected the consumer price inflation to decrease to 0.7%.

On monthly basis, consumer price inflation in the U.K. was flat in December, missing forecasts of a 0.1% rise, after a 0.3% decline in November.

Consumer price inflation excluding food, energy, alcohol, and tobacco increased to an annual rate of 1.3% in November from 1.2% in November. Analysts had expected the consumer inflation to climb to 1.4%.

The Bank of England's inflation target is about 2%.

Investors speculate that Bank of England will keep interest rates on hold for a longer period.

EUR/USD: the currency pair fell to $1.1775

GBP/USD: the currency pair increased to $1.5179

USD/JPY: the currency pair traded mixed

The most important news that are expected (GMT0):

15:00 U.S. JOLTs Job Openings November 4834 4848

EUR/USD

Offers $1.1950/60, $1.1930, $1.1890-900

Bids $1.1762/60, $1.1750, $1.1700

GBP/USD

Offers $1.5195/205

Bids $1.5055/50, $1.5000

AUD/USD

Offers $0.8300, $0.8250, $0.8200, $0.8180/85

Bids $0.8100, $0.8060/50

EUR/JPY

Offers Y141.50, Y141.00

Bids Y139.00, Y138.50

USD/JPY

Offers Y120.00, Y119.50, Y119.00

Bids Y118.00, Y117.50

EUR/GBP

Offers stg0.7900, stg0.7880/85

Bids stg0.7720, stg0.7700

According to official data, China's trade surplus narrowed to $49.61 billion in December from $54.47bn in November, missing expectations for a surplus of $49.85.

China's exports increased 9.7% in December from a year earlier, while imports declined 2.4% from a year earlier.

Exports were driven by stronger demand from the U.S., Europe and Southeast Asia.

On the import side, the country has benefited from lower global energy and commodity prices.

For the full year 2014, China reported a trade surplus of $382.46 billion, compared with a surplus of $259.75 billion in 2013. Exports increased at annual rate of 6.1% in 2014, down from a rise of 7.9% in 2013. Imports rose 0.4%, down from an increase of 7.3% in 2013.

EUR/USD: $1.1825(E253mn), $1.1850(E504mn), $1.1890(E269mn), $1.1925(E585mn)

USD/JPY: Y118.50($250mn), Y119.00($366mn), Y119.50($630mn)

EUR/GBP: Stg0.7800(E300mn)

AUD/USD: $0.8090(A$630mn), $0.8150(A$1.2bn), $0.8250(A$1.5bn)

For the first time since 2002 U.K.'s inflation slowed below 1 percent after an annualized reading of 1% in November. Analyst expected the HICP, the index calculation includes food and clothing prices, education expenditures, as well as prices for public health services, transportation, utility payments and leisure, to decline to +0.7% but data for December showed that inflation sank more-than-expected to 0.5%, the lowest since May 2000. Month over month inflation was flat at 0.0% after falling 0.3% in November. Retail prices rose by +1.6% in line with expectations. Low inflation is putting more pressure on the Bank of England to keep benchmark interest rates at a record low.

REUTERS

Oil prices plunge again as UAE defends holding production

(Reuters) - Oil prices continued their rout on Tuesday with Brentcrude and U.S. WTI both falling to their lowest in almost six years as a big OPEC producer stood by the group's decision not to cut output to tackle a glut in the market.

Oil prices have fallen 60 percent from their 2014 peaks hit in June in a rout that has seen a collapse of more than 36 percent in the past seven weeks.

February Brent crude fell almost 5 percent to a low of $45.23 a barrel by 0730 GMT, the lowest since March 2009. U.S. crude for February was trading at $44.44 a barrel, its weakest since April 2009.

Source: http://www.reuters.com/article/2015/01/13/us-markets-oil-idUSKBN0KM0BT20150113

BLOOMBERG

ECB Warning to Greece Deploys Tactic Honed in Crisis

The European Central Bank is threatening to choke off funding to Greece's lenders in the hope it won't actually need to.

Parliamentary elections on Jan. 25 hinge on whether Greek voters are willing to accept a strings-attached successor to the country's international bailout package. Under President Mario Draghi, the Frankfurt-based ECB has made its position clear: No program means no guarantee of cash from us.

Source: http://www.bloomberg.com/news/2015-01-13/ecb-warning-to-greece-deploys-tactic-honed-in-crisis.html

BLOOMBERG

Pound Weakens as Inflation Weighs on U.K. Interest-Rate Outlook

The pound fell for the first time in five days versus the euro before a report economists said will show U.K. inflation slowed to below 1 percent last month for the first time since 2002.

Weakening price growth would add to data indicating the U.K. recovery is losing momentum and boost speculation that the Bank of England will keep interest rates at a record low. Consumer prices rose an annualized 0.7 percent in December after climbing at a 1 percent pace a month earlier, according to the median forecast of analysts in a Bloomberg News survey. A gauge of U.K. inflation expectations touched the lowest in more than two years.

Source: http://www.bloomberg.com/news/2015-01-13/pound-weakens-as-inflation-weighs-on-u-k-interest-rate-outlook.html

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

00:01 United Kingdom BRC Retail Sales Monitor y/y December +0.9% -0.4%

02:00 China New Loans December 853 885

02:00 China Trade Balance, bln December 54.50 49.85 49.1

05:00 Japan Eco Watchers Survey: Current December 41.5 44.3 45.2

05:00 Japan Eco Watchers Survey: Outlook December 44.0 46.7

The U.S. dollar traded mixed against the most major currencies recovering from Friday's losses. The U.S. currency declined on Friday as investors speculated that the Fed might delay its first interest rate hike due to the weak wage growth and in the absence of sizeable inflationary pressure. Average hourly earnings decreased 0.2% in December. The U.S. Labor Department released the labour market data on Friday. The U.S. economy added 252,000 jobs in December. The U.S. unemployment rate fell to 5.6% in December from 5.8% in November, exceeding expectations for a decline to 5.7%.

The Australian dollar traded almost flat against the U.S. dollar with China's trade balance falling more-than-expected, official data showed on Tuesday. The trade balance fell to 49.1 billion in December from 54.50 in November. Analysts expected a reading of 49.85 billion. China is Australia's most important trade partner.

New Zealand's dollar traded lower further retreating from monthly highs against the greenback reached on January 9th in the absence of any major economic reports from New Zealand.

The Japanese yen traded weaker and declined from a four-week high against the greenback during the Asian after Japanese markets were closed yesterday for a holiday. Recovering Asian stocks damped the demand for the haven currency. The current Eco Watchers Survey, the index for Japan's current economic climate rose unexpectedly to 45.2 points beating forecasts of 44.3 after it plunged to a 12-month low of 41.5 in November. The index outlook rose by 2.7 to 46.7 from a previous reading of 44.0 points. Yesterday current account data showed a surplus of 433 for November. Analysts expected a reading of 133.2.

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

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

09:30 United Kingdom Retail Price Index, m/m December -0.2% +0.2%

09:30 United Kingdom Retail prices, Y/Y December +2.0% +1.6%

09:30 United Kingdom Producer Price Index - Input (MoM) December -1.0% +0.3%

09:30 United Kingdom Producer Price Index - Input (YoY) December -8.8% -12.2%

09:30 United Kingdom Producer Price Index - Output (MoM) December +0.2% -0.4%

09:30 United Kingdom Producer Price Index - Output (YoY) December -0.1% -0.6%

09:30 United Kingdom HICP, m/m December -0.3% +0.1%

09:30 United Kingdom HICP, Y/Y December +1.0% +0.7%

09:30 United Kingdom HICP ex EFAT, Y/Y December +1.2% +1.4%

15:00 U.S. JOLTs Job Openings November 4834 4848

19:00 U.S. Federal budget December -56.8 24.9

21:30 U.S. API Crude Oil Inventories January -4.0

EUR / USD

Resistance levels (open interest**, contracts)

$1.2031 (1805)

$1.1975 (884)

$1.1916 (450)

Price at time of writing this review: $ 1.1828

Support levels (open interest**, contracts):

$1.1766 (1123)

$1.1722 (1603)

$1.1664 (1809)

Comments:

- Overall open interest on the CALL options with the expiration date February, 6 is 46341 contracts, with the maximum number of contracts with strike price $1,2100 (4227);

- Overall open interest on the PUT options with the expiration date February, 6 is 52380 contracts, with the maximum number of contracts with strike price $1,1600 (5911);

- The ratio of PUT/CALL was 1.13 versus 1.13 from the previous trading day according to data from January, 12

GBP/USD

Resistance levels (open interest**, contracts)

$1.5404 (362)

$1.5307 (316)

$1.5211 (788)

Price at time of writing this review: $1.5154

Support levels (open interest**, contracts):

$1.5091 (1415)

$1.4993 (1045)

$1.4895 (1241)

Comments:

- Overall open interest on the CALL options with the expiration date February, 6 is 13950 contracts, with the maximum number of contracts with strike price $1,5800 (1108);

- Overall open interest on the PUT options with the expiration date February, 6 is 15601 contracts, with the maximum number of contracts with strike price $1,5100 (1415);

- The ratio of PUT/CALL was 1.12 versus 1.13 from the previous trading day according to data from January, 12

* - 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 $1,1833 -0,08%

GBP/USD $1,5171 +0,05%

USD/CHF Chf1,0146 +0,07%

USD/JPY Y118,34 -0,17%

EUR/JPY Y140,03 -0,26%

GBP/JPY Y179,53 -0,13%

AUD/USD $0,8155 -0,58%

NZD/USD $0,7781 -0,75%

USD/CAD C$1,1972 +0,89%

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

00:01 United Kingdom BRC Retail Sales Monitor y/y December +0.9%

02:00 China New Loans December 853 885

02:00 China Trade Balance, bln December 54.50 49.85

05:00 Japan Eco Watchers Survey: Current December 41.5 44.3

05:00 Japan Eco Watchers Survey: Outlook December 44.0

09:30 United Kingdom Retail Price Index, m/m December -0.2% +0.2%

09:30 United Kingdom Retail prices, Y/Y December +2.0% +1.6%

09:30 United Kingdom Producer Price Index - Input (MoM) December -1.0% +0.3%

09:30 United Kingdom Producer Price Index - Input (YoY) December -8.8% -12.2%

09:30 United Kingdom Producer Price Index - Output (MoM) December +0.2% -0.4%

09:30 United Kingdom Producer Price Index - Output (YoY) December -0.1% -0.6%

09:30 United Kingdom HICP, m/m December -0.3% +0.1%

09:30 United Kingdom HICP, Y/Y December +1.0% +0.7%

09:30 United Kingdom HICP ex EFAT, Y/Y December +1.2% +1.4%

15:00 U.S. JOLTs Job Openings November 4834 4848

19:00 U.S. Federal budget December -56.8 24.9

21:30 U.S. API Crude Oil Inventories January -4.0