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

00:05 Australia RBA's Governor Glenn Stevens Speech

01:30 Australia Construction Work Done Quarter II -2.4% -1.5%

06:00 Switzerland UBS Consumption Indicator July 1.68

08:30 United Kingdom BBA Mortgage Approvals July 44.5

11:00 U.S. MBA Mortgage Applications August 3.6%

12:30 U.S. Durable Goods Orders July 3.4% -0.4%

12:30 U.S. Durable Goods Orders ex Transportation July 0.8% 0.4%

12:30 U.S. Durable goods orders ex defense 3.8%

14:00 U.S. FOMC Member Dudley Speak

14:30 U.S. Crude Oil Inventories August 2.62 2.2

The European Central Bank (ECB) Vice President Vitor Constancio said on Tuesday that the central bank will add further measures if there is a significant risk to the outlook for inflation in the Eurozone.

I am confident that full implementation of the private and public-sector asset purchase programs, as announced, will lead to a sustained return of inflation rates toward levels consistent with our definition of price stability. As always, the Governing Council stands ready to use all the instruments available within its mandate to respond to any material change to the outlook for price stability," he said.

Constancio pointed out that the recent decline in oil prices is affecting the inflation, "but there is nothing monetary policy can do about that." He added that this effect "will disappear one day".

Japan's Finance Minister Taro Aso on Tuesday expressed worries about a recent increase in yen.

"For the economy to grow stably, it's better for (currency and stock price) moves to be gradual and steady, rather than rough," he said.

The Conference Board released its consumer confidence index for the U.S. on Tuesday. The index rose to 101.5 in August from 91.0 in July, exceeding expectations for a rise to 93.4. July's figure was revised up from 90.9.

The increase was mainly driven by the better outlook for current conditions. The present conditions index climbed to 115.1 in August from 104.0 in July. It was the highest level since November 2007.

The Conference Board's consumer expectations index for the next six months increased to 92.5 in August from 82.3 in July.

"Consumers' assessment of current conditions was considerably more upbeat, primarily due to a more favourable appraisal of the labour market," the director of economic indicators at The Conference Board, Lynn Franco, said.

The percentage of consumers expecting more jobs in the coming months was up to 14.6% in August from 13.7% in July.

The U.S. Commerce Department released new home sales data on Tuesday. New home sales increased 5.7% to a seasonally adjusted annual rate of 507,000 units in July from 481,000 units in June. June's figure was revised down from 482,000 units.

Analysts had expected new home sales to reach 510,000 units.

The increase was driven by higher sales in the Northeast. New home sales in the Northeast climbed 23.1% in July.

The median sales price of new house increased by 2% from a year ago to $285,900.

The Federal Reserve Bank of Richmond released its survey of manufacturing activity on Tuesday. The composite index for manufacturing dropped to 0 in August from 13 in July.

The decline was driven by decreases in shipments and order backlog. Shipments subindex fell 20 points to -4 in August, while new orders subindex was down 16 points to 1.

The Federal Housing Finance Agency (FHFA) released its monthly house price index for the U.S. on Tuesday. The U.S. house price index rose 0.2% on a seasonally adjusted basis in June, missing expectations for a 0.4% increase, after a 0.5% gain in May. May's figure was revised up from 0.4% rise.

The house price index climbed 1.2% in the second quarter.

"Home price growth in the second quarter once again far exceeded the pace of overall inflation, even as mortgage rates drifted upwards. Although too early to tell whether it's a sign of a slowdown, the monthly appreciation rate in June was more modest than we have seen in a while," FHFA Principal Economist Andrew Leventis said.

Markit Economics released its preliminary services purchasing managers' index (PMI) for the U.S. on Tuesday. The U.S. preliminary services purchasing managers' index (PMI) declined to 55.2 in August from 55.7 in July, missing expectations for an increase to 56.0.

A reading above 50 indicates expansion in economic activity.

The decline was driven by a weak new business growth.

"Service providers' new business volumes expanded at the slowest pace since January, suggesting that underlying momentum within the U.S. economy had shifted down a gear even before the recent global market turmoil and escalating worries about China's growth outlook gathered on the horizon.," Markit Senior Economist Tim Moore.

The National Bank of Belgium (NBB) released its business survey on Tuesday. The business climate rose to -5.1 in August from -4.1 in July, missing forecasts for a rise to -3.5.

The decline was driven by a drop in the manufacturing industry.

The business climate index for the manufacturing sector dropped to -8.0 in August from -5.2 in July due to downward revision of demand forecasts.

The business climate index for the services sector was up to 11.8 in August from 7.2 in July due to more optimistic outlook about current levels of activity.

The business climate index for the building sector increased to -8.3 in August from -9.8 in July due to more favourable assessments of demand outlook.

The business climate index for the trade sector dropped to -8.0 in August from -6.7 in July due to downward revision of forecasts for orders and for employment.

EUR/USD: $1.1325(E227mn)

USD/JPY: Y121.50($380mn), Y122.00($666mn), Y123.00($1.0bn)

EUR/GBP: Gbp0.7160(E223mn)

USD/CAD: C$1.3125($190mn), C$1.3250($413mn)

The S&P/Case-Shiller home price index increased 5.0% in June, missing expectations for a 5.1% rise, after a 4.9% gain in May.

Denver, San Francisco and Dallas were the largest contributors to the rise, where prices climbed by 10.2%, 9.5% and 8.2%, respectively.

"The price gains have been consistent as the unemployment rate declined with steady inflation and an unchanged Fed policy," chairman of the index committee at S&P Dow Jones Indices David Blitzer said.

On a monthly basis, the S&P/Case-Shiller home price index climbed by a seasonally adjusted 0.1% rate in June.

The S&P/Case-Shiller home price index measures single-family home prices in 20 U.S. cities.

The People's Bank of China (PBoC) announced on Tuesday that it lowered the one-year benchmark bank lending rate by 25 basis points to 4.6%. The central bank hopes with this decision to support the country's economy and to calm down the markets.

The interest rate cut would be effective from Wednesday.

One-year benchmark deposit rates were cut by 25 basis point, reserve requirements (RRR) were lowered by 50 basis points to 18% for most big banks.

New reserve requirements would be effective on September 6.

Economic calendar (GMT0):

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

00:00 Australia Conference Board Australia Leading Index June 0.2% -0.2%

03:00 New Zealand Expected Annual Inflation 2y from now Quarter III 1.9% 1.9%

06:00 Germany GDP (YoY) (Finally) Quarter II 1.2% Revised From 1.1% 1.6% 1.6%

06:00 Germany GDP (QoQ) (Finally) Quarter II 0.3% 0.4% 0.4%

07:15 Switzerland Employment Level Quarter II 4.23 4.24 4.24

08:00 Germany IFO - Business Climate August 108 107.7 108.3

08:00 Germany IFO - Current Assessment August 113.9 113.9 114.8

08:00 Germany IFO - Expectations August 102.3 Revised From 102.4 102 102.2

The U.S. dollar traded mixed against the most major currencies ahead the release of the U.S. economic data. The S&P/Case-Shiller home price index is expected to rise by 5.1% in June, after a 4.9% gain in May.

The U.S. consumer confidence is expected to climb to 93.4 in August from 90.9 from July.

New home sales in the U.S. are expected to rise to 510,000 units in July from 482,000 units in June.

Concerns over a slowdown in the Chinese economy still weighed on the greenback.

The euro traded lower against the U.S. dollar despite the positive economic data from Germany. German business confidence index rose to 108.3 in August from 108.0 in July, beating expectations for a decline to 107.7.

"Satisfaction with the current situation has again increased significantly. However, the companies were somewhat less optimistic regarding future business. The German economy continues to be a rock in turbulent waters," Ifo President Hans-Werner Sinn said.

The Ifo current conditions index climbed to 114.8 from 113.9. Analysts had expected the index to remain unchanged at 113.9.

The Ifo expectations index declined to 102.2 from 102.3. Analysts had expected the index to decrease to 102.0.

Germany's final GDP gained by 0.4% in the second quarter, in line with the preliminary reading, after a 0.3% increase in the first quarter.

The increase was driven by higher exports as the euro remained weak. Exports increased much more than imports.

Household and government consumption expenditure continued to develop positively.

On a yearly basis, Germany's final GDP rose to 1.6% in the second quarter from 1.2% in the first quarter, in line with the preliminary reading.

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

The Swiss franc traded lower against the U.S. dollar. The employment in Switzerland increased by 1.2% year-on-year in the second quarter, after a 0.4% gain in the first quarter.

The tertiary sector expanded at an annual rate of 1.6% in annual comparison), while the secondary sector declined -0.1%.

The number of job vacancies dropped by 8.3% year-on-year, while the employment outlook indicator fell 1.4%.

EUR/USD: the currency pair declined to $1.1455

GBP/USD: the currency pair traded mixed

USD/JPY: the currency pair rose to Y120.39

The most important news that are expected (GMT0):

13:00 Belgium Business Climate August -4.1 -3.5

13:00 U.S. Housing Price Index, m/m June 0.4% 0.4%

13:00 U.S. S&P/Case-Shiller Home Price Indices, y/y June 4.9% 5.1%

13:45 U.S. Services PMI (Preliminary) August 55.7 56

14:00 U.S. Richmond Fed Manufacturing Index August 13

14:00 U.S. New Home Sales July 482 510

14:00 U.S. Consumer confidence August 90.9 93.4

16:25 Canada BOC Deputy Governor Lawrence Schembri Speaks

22:45 New Zealand Trade Balance, mln July -60

Federal Reserve Bank of Atlanta President Dennis Lockhart said on Monday that he still expects the Fed to raise its interest rate this year.

"I expect the normalization of monetary policy-that is, interest rates-to begin sometime this year. I expect normalization to proceed gradually, the implication being an environment of rather low rates for quite some time," he said.

Lockhart is a voting member of the Federal Open Market Committee this year.

The Swiss Federal Statistical Office (FSO) released its employment data on Tuesday. The employment in Switzerland increased by 1.2% year-on-year in the second quarter, after a 0.4% gain in the first quarter.

The tertiary sector expanded at an annual rate of 1.6% in annual comparison), while the secondary sector declined -0.1%.

The number of job vacancies dropped by 8.3% year-on-year, while the employment outlook indicator fell 1.4%.

EUR/USD: $1.1325(E227mn)

USD/JPY: Y121.50($380mn), Y122.00($666mn), Y123.00($1.0bn)

EUR/GBP: Gbp0.7160(E223mn)

USD/CAD: C$1.3125($190mn), C$1.3250($413mn)

The Spanish statistical office INE released its producer price index (PPI) data for Spain on Tuesday. The Spanish producer prices rose 0.1% in July, after a 0.9% increase in June.

On a yearly basis, producer price inflation in Spain fell 1.3% in July, after a 1.3% decline in June. Producer prices have been declining since July 2014.

Producer prices excluding energy climbed 0.7% year-on-year in July, after a 0.7% rise in June.

Energy prices dropped 7.0% in July.

Destatis released its final gross domestic product (GDP) growth for Germany on Tuesday. Germany's final GDP gained by 0.4% in the second quarter, in line with the preliminary reading, after a 0.3% increase in the first quarter.

The increase was driven by higher exports as the euro remained weak. Exports increased much more than imports.

Household and government consumption expenditure continued to develop positively.

On a yearly basis, Germany's final GDP rose to 1.6% in the second quarter from 1.2% in the first quarter, in line with the preliminary reading.

German Ifo Institute released its business confidence figures for Germany on Tuesday. German business confidence index rose to 108.3 in August from 108.0 in July, beating expectations for a decline to 107.7.

"Satisfaction with the current situation has again increased significantly. However, the companies were somewhat less optimistic regarding future business. The German economy continues to be a rock in turbulent waters," Ifo President Hans-Werner Sinn said.

The Ifo current conditions index climbed to 114.8 from 113.9. Analysts had expected the index to remain unchanged at 113.9.

The Ifo expectations index declined to 102.2 from 102.3. Analysts had expected the index to decrease to 102.0.

Chancellor of the Exchequer George Osborne said on Monday that the U.K. economy could be hurt by international shocks.

"Everyone is concerned about the situation on the Asian financial markets. I would take it as a reminder that we are not immune from what happens in the world," he said.

Osborne pointed out that it is necessary to keep "own house in order".

"You don't know where the next crisis is coming from, where the next shock is going to come from in the world. Britain is a very open economy, probably the most open of the largest economies, and we are affected by what happens, whether it is problems in the euro zone, problems in Asian financial markets," he noted.

The People's Bank of China (PBoC) injected 150 billion yuan ($23.4 billion) in the financial system on Tuesday, increasing efforts to combat capital flight from the country's economy and stock markets. The central bank used seven-day reverse-repurchase agreements.

The PBoC already injected 150 billion yuan in the financial system last week.

According to a National Association for Business Economics (NABE) survey, only 37% of the economists expect that the Fed will raise its interest rate next month. Nearly a quarter of the economists said the central bank is likely to start hiking rates in late October, 17% expect the first interest rate hike would come in December, while 17% said that the Fed would wait until next year or later.

NABE surveyed 331 economists between July 27 and August 4.

EUR / USD

Resistance levels (open interest**, contracts)

$1.1717 (3447)

$1.1674 (2458)

$1.1645 (3797)

Price at time of writing this review: $1.1569

Support levels (open interest**, contracts):

$1.1486 (594)

$1.1429 (1737)

$1.1358 (1863)

Comments:

- Overall open interest on the CALL options with the expiration date September, 4 is 84746 contracts, with the maximum number of contracts with strike price $1,1300 (7727);

- Overall open interest on the PUT options with the expiration date September, 4 is 123486 contracts, with the maximum number of contracts with strike price $1,0500 (7811);

- The ratio of PUT/CALL was 1.46 versus 1.38 from the previous trading day according to data from August, 24

GBP/USD

Resistance levels (open interest**, contracts)

$1.6002 (1640)

$1.5904 (2251)

$1.5808 (2550)

Price at time of writing this review: $1.5760

Support levels (open interest**, contracts):

$1.5694 (356)

$1.5597 (970)

$1.5499 (2771)

Comments:

- Overall open interest on the CALL options with the expiration date September, 4 is 30395 contracts, with the maximum number of contracts with strike price $1,5600 (2723);

- Overall open interest on the PUT options with the expiration date September, 4 is 35190 contracts, with the maximum number of contracts with strike price $1,5500 (2771);

- The ratio of PUT/CALL was 1.16 versus 1.15 from the previous trading day according to data from August, 24

* - 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.

Economic calendar (GMT0):

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

00:00 Australia Conference Board Australia Leading Index June 0.2% -0.2%

03:00 New Zealand Expected Annual Inflation 2y from now Quarter III 1.9% 1.9%

06:00 Germany GDP (YoY) (Finally) Quarter II 1.1% 1.6% 1.6%

06:00 Germany GDP (QoQ) (Finally) Quarter II 0.3% 0.4% 0.4%

The Australian dollar strengthened against the U.S. dollar amid positive statistics from China. The country's Leading indicators index from the Conference Board rose to 0.9% in July from 0.6% reported previously. In May the index was above 1.1%. "July's gain in the Leading Economic Index for China was driven mainly by bank loans, while consumer sentiment, manufacturing, and exports were all weak," Said Jing Sima, senior economist at The Conference Board. He also noted that China's economy is likely to face increasing downside risks in the coming months. China is Australia's major trading partner.

The yen fell against the greenback amid correction in Japanese stocks. The Nikkei stepped into the green area. Yesterday the yen rose sharply amid lower expectations for global economic growth and inflation and uncertainties related to monetary policy tightening in the U.S. Now investors expect the Federal Reserve to raise its benchmark rate in December or in 2016.

EUR/USD: the pair fell to $1.1525 in Asian trade

USD/JPY: the pair rose to Y120.10

GBP/USD: the pair traded within $1.5745-75

The most important news that are expected (GMT0):

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

07:15 Switzerland Employment Level Quarter II 4.23 4.24

08:00 Germany IFO - Business Climate August 108 107.7

08:00 Germany IFO - Current Assessment August 113.9 113.9

08:00 Germany IFO - Expectations August 102.4 102

13:00 Belgium Business Climate August -4.1 -3.5

13:00 U.S. Housing Price Index, m/m June 0.4% 0.4%

13:00 U.S. S&P/Case-Shiller Home Price Indices, y/y June 4.9% 5.1%

13:45 U.S. Services PMI (Preliminary) August 55.7 56

14:00 U.S. Richmond Fed Manufacturing Index August 13

14:00 U.S. New Home Sales July 482 510

14:00 U.S. Consumer confidence August 90.9 93.4

16:25 Canada BOC Deputy Governor Lawrence Schembri Speaks

20:30 U.S. API Crude Oil Inventories August -2.3

22:45 New Zealand Trade Balance, mln July -60

(pare/closed(GMT +3)/change, %)

EUR/USD $1,1579 +1,67%

GBP/USD $1,5752 +0,39%

USD/CHF Chf0,9327 -1,43%

USD/JPY Y118,60 -2,90%

EUR/JPY Y137,32 -1,19%

GBP/JPY Y186,65 -2,57%

AUD/USD $0,7137 -2,45%

NZD/USD $0,6444 -3,72%

USD/CAD C$1,3386 +1,49%