The euro fell to a three-month low against the U.S. dollar after comments from ECB representative of low interest rates. In an interview with Reuters Governing Council member Joerg Asmussen, explaining ECB President Mario Draghi made to them last week, said the ECB will probably keep rates low for more than 12 months. Asmussen also said that would not rule out another round of cheap credit that was used two years ago to inject capital into troubled banks in the eurozone.

A sharp decline in the euro reacted to those comments, as they were the signal that the ECB will continue to keep rates low, which reduces the attractiveness of euro-denominated assets to investors. Last week, Draghi promised that rates in the euro area will remain at low levels "for an extended period of time." It was an unprecedented move by the central bank.

Later, however, the ECB acted with objections as to the timing relative to a reference period of validity of the monetary policy.

The euro strengthened decline after the rating agency Standard & Poor's downgraded Italy's credit rating from BBB + to the level of BBB. As stated in the accompanying statement, S & P, this measure reflects the impact of the ongoing slowdown in Italy due to structural weakness and low vitality of its economy. S & P maintained a negative outlook on the rating, which indicates the possibility of further downgrade in 2013 or 2014, with a probability of 3.1.

The pound fell against the dollar significantly, aided by the publication of the report by Britain. As shown by recent data that was presented today by the Office for National Statistics, the volume of industrial production in the UK has not changed in the month of May, while manufacturing output unexpectedly fell.

According to a report in the May monthly basis, the volume of industrial production showed zero growth, while manufacturing output fell by 0.8%. It should be noted that, according to experts average output was increased by 0.3% and 0.5%, respectively. We also add that the rate of industrial production for April was revised down to -0.1% from 0.1%.

In addition, the data showed that on an annual basis, industrial production fell by 2.3%, beating economists' forecasts of 1.5% reduction, which was associated with a 2.9% fall in manufacturing and a 3.5% decline in the mining industry and quarrying.

The yen was suspended yesterday's decline against the euro, pending the outcome of a two-day meeting of the Bank of Japan, which starts tomorrow. Officials will discuss the situation in the markets, and, according to rumors, a reassessment of the country's economic growth upwards.

EUR/USD $1.2750, $1.2800, $1.2830, $1.2900, $1.2950, $1.3000

USD/JPY Y100.00, Y100.50, Y101.00, Y101.20, Y101.50, Y101.60

EUR/JPY Y130.00

GBP/USD $1.4900, $1.5000

AUD/USD $0.9015, $0.9150, $0.9180

AUD/JPY Y90.15, Y91.55

NZD/JPY Y77.40

USD/CAD C$1.0500, C$1.0530

CAD/JPY Y95.75

Data

01:30 Australia National Australia Bank's Business Confidence June -1 0

01:30 China PPI y/y June -2.9% -2.5% -2.7%

01:30 China CPI y/y June +2.1% +2.5% +2.7%

06:00 Japan Prelim Machine Tool Orders, y/y June -7.4% -12.4%

07:15 Switzerland Retail Sales Y/Y May +3.3% +3.7% +1.8%

08:30 United Kingdom Industrial Production (MoM) May +0.1% +0.3% 0.0%

08:30 United Kingdom Industrial Production (YoY) May -0.6% -1.5% -2.3%

08:30 United Kingdom Manufacturing Production (MoM) May -0.2% +0.5% -0.8%

08:30 United Kingdom Manufacturing Production (YoY) May -0.5% -1.5% -2.9%

08:30 United Kingdom Trade in goods May -8.2 -8.5 -8.5

09:00 Eurozone ECOFIN Meetings

The pound fell against the dollar significantly, aided by the publication of the report by Britain. As shown by recent data that was presented today by the Office for National Statistics, the volume of industrial production in the UK has not changed in the month of May, while manufacturing output unexpectedly fell.

According to a report in the May monthly basis, the volume of industrial production showed zero growth, while manufacturing output fell by 0.8%.

It should be noted that, according to experts average output was increased by 0.3% and 0.5%, respectively. We also add that the rate of industrial production for April was revised down to -0.1% from 0.1%.

In addition, the data showed that on an annual basis, industrial production fell by 2.3%, beating economists' forecasts of 1.5% reduction, which was associated with a 2.9% fall in manufacturing and a 3.5% decline in the mining industry and quarrying. With regard to production in the manufacturing industry, it declined by 2.9%, which was also significantly higher than the estimates of experts at -1.5%. Note also that the decline followed the April decline of 0.6% and 0.5%, respectively.

The yen was suspended yesterday's decline against the euro, pending the outcome of a two-day meeting of the Bank of Japan, which starts tomorrow. Officials will discuss the situation in the markets, and, according to rumors, a reassessment of the country's economic growth upwards.

The Australian dollar rose after a strong rise in gold prices in Asia on Tuesday. We also add that traders expect the comments on Wednesday the central bank's assessment of the prospects for the U.S. economy.

The U.S. Federal Reserve will release the minutes of its meeting on June 18-19 on Wednesday, and investors expect the information that policy makers intend to reduce the economic incentives to the end of the week.

Fed Chairman Ben Bernanke is also planning to give a speech on economic policy. Fed may begin to curtail their economic stimulus program by the end of the year.

Experts note that Bernanke may increase expectations that the Fed's bond-buying program, which aims to lower interest rates in the U.S. may be a step closer after the employment data in the U.S. on Friday. The market is still trying to assess whether September will bring a reduction of 85 billion dollar stimulus. The strength of the Australian dollar is growing, despite a lot of bad news on the domestic front. Australian business conditions fell to its lowest level in more than four years, despite the support of record low interest rates and a sharp fall in the local currency, which has helped manufacturers

EUR / USD: during the European session, the pair rose to $ 1.2898, then dropped to $ 1.2855

GBP / USD: during the European session, the pair fell to $ 1.4831

USD / JPY: during the European session, the pair rose to Y101.31

At 12:15 GMT Canada will report on the number of Housing Starts in June. At 14:00 GMT Britain will present data on changes in GDP from NIESR for June. At 20:30 GMT the U.S. will report on changes in the volume of crude oil, according to API. At 23:50 GMT Japan will release the minutes of the meeting of the Bank of Japan on monetary policy in June, and the index of activity in the services sector in May.

EUR/USD

Offers $1.2950/60, $1.2930/35, $1.2900, $1.2898

Bids $1.2845/40, $1.2815/00, $1.2780, $1.2755/45

GBP/USD

Offers $1.5050/60, $1.5030, $1.5000/10, $1.4950/60, $1.4920, $1.4900/05

Bids $1.4832, $1.4810/00, $1.4780/70

AUD/USD

Offers $0.9320, $0.9300, $0.9270/75, $0.9250, $0.9220/30, $0.9200

Bids $0.9100, $0.9085/80, $0.9070, $0.9045/40, $0.9025

EUR/GBP

Offers stg0.8740/45, stg0.8715/20, stg0.8700/05, stg0.8690/95, stg0.8670

Bids stg0.8570/65, stg0.8515/10, stg0.8500, stg0.8482

EUR/JPY

Offers Y132.00, Y131.50, Y131.15/20, Y131.00, Y130.80/85, Y130.55/60

Bids Y129.80/70, Y129.50, Y129.20, Y129.10/00, Y128.55/50

USD/JPY

Offers Y102.20, Y102.00, Y101.50, Y101.30

Bids Y100.80/75, Y100.55/50, Y100.25/20, Y100.00

EUR/USD $1.2750, $1.2800, $1.2830, $1.2900, $1.2950, $1.3000

USD/JPY Y100.00, Y100.50, Y101.00, Y101.20, Y101.50, Y101.60

EUR/JPY Y130.00

GBP/USD $1.4900, $1.5000

AUD/USD $0.9015, $0.9150, $0.9180

AUD/JPY Y90.15, Y91.55

NZD/JPY Y77.40

USD/CAD C$1.0500, C$1.0530

CAD/JPY Y95.75

01:30 Australia National Australia Bank's Business Confidence June -1 0

01:30 China PPI y/y June -2.9% -2.5% -2.7%

01:30 China CPI y/y June +2.1% +2.5% +2.7%

The Dollar Index rose as traders increased bullish bets on the U.S. currency amid speculation the Federal Reserve will provide further guidance on plans to scale back asset purchases. The gauge advanced toward the three-year high reached yesterday before Fed Chairman Ben S. Bernanke speaks tomorrow, the same day minutes of the central bank’s June meeting are due.

The yen halted yesterday’s decline versus the euro before Bank of Japan officials meet this week. BOJ Governor Haruhiko Kuroda and his fellow policy makers will gather tomorrow for a two-day meeting. Officials will discuss upgrading their assessment of the nation’s economy by using the word “recover” for the first time in more than two years, people familiar with the central bank’s discussions said.

The Aussie dollar weakened after Chinese government figures showed the consumer price index for the world’s second-biggest economy rose 2.7 percent in June from a year earlier, more than the 2.5 percent forecast by economists in a Bloomberg News survey. China is Australia’s biggest trading partner. Interest-rate swaps data compiled by Bloomberg News show traders see a 58 percent chance the RBA will reduce its benchmark interest rate to an unprecedented 2.5 percent at its next meeting on Aug. 6. The rate already stands at a record low of 2.75 percent.

EUR / USD: during the Asian session the pair traded in the range of $ 1.2845/70

GBP / USD: during the Asian session the pair traded in the range of $ 1.4915/50

USD / JPY: during the Asian session the pair rose to Y101.25

There is a string of UK data set for release at 0830GMT, including May Industrial Production, May Trade Data and the June BOE Quoted Rates data. Industrial output is seen coming in 0.1% higher on month. The May manufacturing PMI showed the sector expanding, with the 51.3 outturn marking a 14- month high. The three monthly growth rate in manufacturing output should be comfortably into positive territory, with the sector on track to make a positive contribution to Q2 GDP. The narrowing in the April trade balance may prove unsustainable. Analysts' median forecast is for no deterioration in May, but some see a large chunk of the near stg1 billion narrowing in April being unwound. At 1030GMT, UK Chief Treasury Sec Danny Alexander will appear before the Treasury Select Committee to answer questions on the spending round. At 1400GMT, the NIESR Monthly GDP Growth Forecast numbers will cross the wires. At 1430GMT, Bank of England Deputy Governor Andrew Bailey will deliver a speech to the Association of British Insurers conference.

(pare/closed(00:00 GMT +02:00)/change, %)

EUR/USD $1,2868 -0,33%

GBP/USD $1,4948 -0,84%

USD/CHF Chf0,9636 +0,77%

USD/JPY Y100,88 +0,76%

EUR/JPY Y129,81 +0,40%

GBP/JPY Y150,78 -0,06%

AUD/USD $0,9132 -0,09%

NZD/USD $0,7805 -0,32%

USD/CAD C$1,0560 +0,42%

01:30 Australia National Australia Bank's Business Confidence June -1

01:30 China PPI y/y June -2.9% -2.5% -2.7%

01:30 China CPI y/y June +2.1% +2.5% +2.7%

06:00 Japan Prelim Machine Tool Orders, y/y June -7.4%

07:15 Switzerland Retail Sales Y/Y May +3.3% +3.7%

08:30 United Kingdom Industrial Production (MoM) May +0.1% +0.3%

08:30 United Kingdom Industrial Production (YoY) May -0.6% -1.5%

08:30 United Kingdom Manufacturing Production (MoM) May -0.2% +0.5%

08:30 United Kingdom Manufacturing Production (YoY) May -0.5% -1.5%

08:30 United Kingdom Trade in goods May -8.2 -8.5

09:00 Eurozone ECOFIN Meetings

12:15 Canada Housing Starts June 200 190

14:00 United Kingdom NIESR GDP Estimate June +0.6%

14:30 United Kingdom BOE Deputy Governor Andrew Bailey Speaks

20:30 U.S. API Crude Oil Inventories July -9.4

23:50 Japan Monetary Policy Meeting Minutes June

23:50 Japan Tertiary Industry Index May 0.0% +0.9%