The yen weakened against the U.S. dollar against the two-day meeting starting today, the Federal Reserve, which may give markets further information about when the U.S. central bank will reduce the bond-buying program. It is expected that the central bank may announce the collapse of quantitative easing. May 22, Fed Chairman Ben Bernanke said he was willing to reduce the current incentive program, if employment rates in the country will begin to show sustained improvement. Additional pressure on the yen has had a release of weak data on industrial output in Japan. April data showed an increase of 0.9%, while analysts had expected a rise to 1.7%.

It is worth noting that Japan's currency has lost some of its gains this month after the central bank released data on the current account of balance of payments, which rose to a new high against the backdrop of unprecedented monetary stimulus.

The euro exchange rate reached a four-month high against the dollar, after data from the Center for European Economic Research (ZEW), showed that the indicator of investor confidence in Germany rose in June, more than expected, after it remained at the same level in the previous month.

According to the report, the index of economic expectations in Germany in June rose 38.5 versus 36.4 in May. Economists had expected the index to rise to 38.2. At the same time, the index of current conditions in Germany June 8.6 vs 8.9 in May. The market had expected the index to rise to 9.5.

ZEW President Clemens Fuest said that "financial experts stick to their estimates: the German economy is likely to gain momentum in the second half of 2013." "However, the results of this survey show that the economy will improve slowly."

In addition, the report showed that euro zone economic sentiment index rose three points to 30.6 in June. The current conditions index for the currency bloc, however, lost 2.7 points to -79.5.

The pound rebounded from lows against the dollar, but still traded lower. It is worth noting that such dynamics triggered data on inflation and producer prices.

As it became known, the rate of inflation (CPI) rose to 2.7 percent in May from 2.4 percent in April. Economists had expected the CPI to rise to 2.6 percent. On a monthly basis, consumer prices rose by 0.2 percent, the same pace as in the previous month. Economists expected the index to rise by 0.1 percent. The retail price index (RPI) rose by 3.1 percent year on year, as expected. Separately Bureau of Statistics reported that the Producer Price Index (Output PPI) year on year in May rose by 1.2 percent in May, compared with 0.9 percent in April. This, however, was lower than the 1.4 percent that economists expected. On a monthly index measuring sales prices remained unchanged in line with expectations. The base index of producer prices, which exclude volatile prices for food, beverages, tobacco and petroleum products rose 0.8 percent year on year, compared with the expected 0.9 percent growth. In the year to May, the production costs faced by producers (Input PPI), rose 2.2 percent after a 0.1 percent drop in April. Expected to increase to 2.5 percent. On a monthly basis, the Producer Price Index fell 0.3 percent, while expectations were at the same level.