The euro has increased markedly against the dollar, restored with almost all the positions lost yesterday. Note that the strengthening currency helped to reports in Germany and France.

As shown by the final data, which were presented by the Federal Statistical Office, at the end of last month inflation accelerated again in Germany, which was the second consecutive monthly increase, which primarily was due to higher prices for food and energy. Meanwhile, add that with the last read of inflation reached its highest level since December 2012. According to a report by the end of June, consumer prices rose by 0.1% on a monthly basis, and have risen by 1.8% a year, which is fully consistent with the preliminary estimates and forecasts of experts. For comparison, in April, the annual inflation rate was 1.2%.

For France, the data from the Statistical Office Insee showed that by the end of May the volume of French industrial production fell by less than many economists had forecast, which partly helped increase production of cars and electricity. According to a report in the May monthly basis, the volume of industrial production decreased by 0.4%, which was followed after increasing by 2.2% in April. We also add that the annualized value of this indicator increased by 0.4%, almost blocking the decline of 0.5% recorded in the previous month. Experts estimate the volume of production to be reduced by 0.5% on a monthly basis, and will decrease by 0.1% per year.

The yen rose significantly against most major currencies as signs of recovery in the Japanese economy reduces the prospects that the central bank soften its monetary policy this year. Also, the currency's associated with the start of a two-day meeting of the Bank of Japan. Most economists believe that the outcome of the meeting of the Central Bank Haruhiko Kuroda manager and his colleagues will not expand incentive programs. It is expected that the bankers will discuss the situation in the markets, and, according to rumors, a reassessment of the country's economic growth upwards.

Also helped to strengthen the currency report on China. According to published data, the volume of exports in June fell by 3.1% compared with the same period last year, after the lackluster growth in May, up 1% compared to May 2012. Result for June was significantly worse than expected export increase by an amount slightly greater than 3%. Weak export completes a series of disappointing indicators of the Chinese economy. However, in a report released Wednesday morning, a statement by Prime Minister Li Keqiang pointed out that the current level of growth is within the acceptable range.

Wholesale inventories in the U.S. unexpectedly decreased in the month of May, according to a report released by the Commerce Department on Wednesday, although the report also showed a significant increase in wholesale sales for the month.

The Commerce Department said wholesale inventories fell by 0.5 percent in May following a revised 0.1 percent decrease in April.

The drop surprised economists, who had been expecting inventories to rise by 0.3 percent compared to the 0.2 percent increase originally reported for the previous month.

The unexpected decrease in wholesale inventories was partly due to a 0.3 percent drop in inventories of durable goods, which reflected a 1.7 percent decrease in inventories of metals and minerals, except petroleum.

Inventories of non-durable goods also fell by 0.8 percent in May amid a 6.0 percent drop in inventories of farm product raw materials.

Meanwhile, the report also showed that wholesale sales surged up by 1.6 percent in May following a revised 0.7 percent increase in April.

Sales of non-durable goods jumped 2.8 percent amid substantial increases in sales of apparel, piece goods, and notions and grocery and related products.

The Commerce Department said sales of durable goods showed a more modest 0.3 percent increase, as a jump in sales of motor vehicles, parts and supplies was partly offset by a notable drop in sales metals and minerals, except petroleum.

EUR/USD $1.2770, $1.2800, $1.2825, $1.2900, $1.3000

USD/JPY Y99.00, Y99.75, Y100.50, Y101.00, Y101.50, Y102.00

EUR/JPY Y131.00

GBP/USD $1.4825, $1.4850, $1.4875, $1.5000

EUR/GBP stg0.8400

USD/CHF Chf0.9500, Chf0.9600

EUR/CHF Chf1.2370, Chf1.2450

AUD/USD $0.8900, $0.9050, $0.9250

AUD/JPY Y92.75

USD/CAD C$1.0550, C$1.0560

Data

00:30 Australia Westpac Consumer Confidence July 102.2 102.1

02:00 China Trade Balance, bln June 20.4 27.8 27.1

05:00 Japan Consumer Confidence June 45.7 47.2 44.3

06:00 Germany CPI, m/m (Finally) June +0.1% +0.1% +0.1%

06:00 Germany CPI, y/y (Finally) June +1.8% +1.8% +1.9%

06:45 France Industrial Production, m/m May +2.2% -0.5% -0.4%

06:45 France Industrial Production, y/y May -0.5% -0.1% 0.4%

07:30 Australia RBA Assist Gov Debelle Speaks

The euro exchange rate against the dollar has increased markedly, restored with more than half of the positions lost yesterday. Note that the strengthening currency helped to reports in Germany and France.

As shown by the final data, which were presented by the Federal Statistical Office, at the end of last month inflation accelerated again in Germany, which was the second consecutive monthly increase, which primarily was due to higher prices for food and energy. Meanwhile, add that with the last reading level inflation reached its highest level since December 2012.

According to a report on the results of the month of June, consumer prices rose by 0.1% on a monthly basis, and rose by 1.8% over the year, which is fully consistent with the preliminary estimates and forecasts of experts. For comparison, in April, the annual inflation rate was 1.2%.

Commenting on the data presented, the Federal Statistical Office reported that inflation in June was due to rising food and energy prices against the decision of the German government to abandon fossil hydrocarbon and nuclear power. Note that food prices jumped by 5.4% from June 2012, while energy costs increased 3.0%. It is assumed that the increase in food inflation will continue in the coming months.

For France, the data from the Statistical Office Insee showed that up to May, the volume of French industrial production fell by less than many economists had forecast, which partly helped increase production of cars and electricity.

According to a report in the May monthly basis, the volume of industrial production decreased by 0.4%, which was followed after increasing by 2.2% in April. We also add that the annualized value of this indicator increased by 0.4%, almost blocking the decline of 0.5% recorded in the previous month. Experts estimate the volume of production to be reduced by 0.5% on a monthly basis, and will decrease by 0.1% per year.

The yen rose significantly against most major currencies as signs of recovery in the Japanese economy reduces the prospects that the central bank soften its monetary policy this year. Also, the currency's associated with the start of a two-day meeting of the Bank of Japan. Most economists believe that the outcome of the meeting of the Central Bank Haruhiko Kuroda manager and his colleagues will not expand incentive programs. It is expected that the bankers will discuss the situation in the markets, and, according to rumors, a reassessment of the country's economic growth upwards.

Also helped to strengthen the currency report on China. According to published data, the volume of exports in June fell by 3.1% compared with the same period last year, after the lackluster growth in May, up 1% compared to May 2012. Result for June was significantly worse than expected export increase by an amount slightly greater than 3%.

Weak export completes a series of disappointing indicators of the Chinese economy. However, in a report released Wednesday morning, a statement by Prime Minister Li Keqiang pointed out that the current level of growth is within the acceptable range.

"As long as the rate of economic growth, employment and other indicators do not fall below our minimum limit, and inflation does not exceed the upper limit, we will focus on restructuring and promoting reform," - said Lee.

China's export sector is suffering under the weight of rising wages and a strong yuan, to the detriment of competitiveness, as well as sluggish demand from major trading partners - the U.S. and Europe.

Imports fell in June by 0.7% compared to the same period last year, against a decline of 0.3% in May, indicating that weak domestic demand in the Chinese economy. Value of the index for June is also not in line with expectations of economists, who had forecast an increase in imports by 5.5%.

The positive balance of foreign trade of China in June rose to 27.13 billion dollars against 20.43 billion dollars in May.

EUR / USD: during the European session, the pair rose to $ 1.2835

GBP / USD: during the European session, the pair rose to $ 1.4920

USD / JPY: during the European session, the pair fell to Y99.73

At 14:30 GMT the United States will announce the reserves of crude oil from the Ministry of Energy. At 17:00 GMT the United States places the 10-year bonds. At 18:00 GMT the United States will be publication of the minutes of the Fed meeting in June. At 22:30 GMT New Zealand will release the index of business activity in the manufacturing sector of Business NZ in June. At 23:50 GMT Japan will report on changes in the volume of orders for machinery and equipment for May.

EUR/USD

Offers $1.2880-900, $1.2860/65, $1.2850, $1.2835/40

Bids $1.2800, $1.2755/45, $1.2730/25

GBP/USD

Offers $1.5000/10, $1.4965/70, $1.4940/50, $1.4924

Bids $1.4810/00, $1.4780/70, $1.4750-35

AUD/USD

Offers $0.9300, $0.9270/80, $0.9250, $0.9234/40

Bids $0.9175/70, $0.9150, $0.9130/25, $0.9100, $0.9085/80, $0.9070, $0.9045/40

EUR/GBP

Offers stg0.8700/05, stg0.8690/95, stg0.8670, stg0.8640, stg0.8615/20

Bids stg0.8575/65, stg0.8515/10, stg0.8500

EUR/JPY

Offers Y130.00, Y129.45/50, Y129.30/35, Y129.00/10, Y128.65/70

Bids Y128.05/00, Y127.80, Y127.50, Y127.00

USD/JPY

Offers Y101.70/80, Y101.50, Y101.22/30, Y100.90/00, Y100.40/45

Bids Y99.50, Y99.19, Y99.00, Y98.82/76

EUR/USD $1.2770, $1.2800, $1.2825, $1.2900, $1.3000

USD/JPY Y99.00, Y99.75, Y100.50, Y101.00, Y101.50, Y102.00

EUR/JPY Y131.00

GBP/USD $1.4825, $1.4850, $1.4875, $1.5000

EUR/GBP stg0.8400

USD/CHF Chf0.9500, Chf0.9600

EUR/CHF Chf1.2370, Chf1.2450

AUD/USD $0.8900, $0.9050, $0.9250

AUD/JPY Y92.75

USD/CAD C$1.0550, C$1.0560

00:30 Australia Westpac Consumer Confidence July 102.2 102.1

02:00 China Trade Balance, bln June 20.4 27.8 27.1

Europe’s shared currency fell for a second day versus the yen before ECB Executive-Board Member Joerg Asmussen speaks today. He said yesterday the central bank’s policy will remain accommodative for an extended period, reiterating comments by President Mario Draghi.

Industrial production in France probably fell 0.8 percent in May from the previous month, when it increased 2.2 percent, according to the median estimate of economists surveyed by Bloomberg News before the data today.

Standard & Poor’s yesterday cut Italy’s long-term credit rating to BBB, two levels above junk, from BBB+, citing expectations for a weakening in economic prospects and the nation’s impaired financial system.

Fed Chairman Ben S. Bernanke is due to speak on economic policy as the Dollar Index rose toward a three-year high. In the U.S., minutes will be released today of the Federal Open Market Committee’s June 18-19 meeting, after which Bernanke told reporters the central bank may begin to slow its $85 billion in monthly bond purchases this year.

Japan’s currency gained against its major peers as economists cut ditched forecasts for the Bank of Japan to ease policy further this year. Bank of Japan Governor Haruhiko Kuroda and his fellow policy makers start a two-day meeting today. They will discuss upgrading their assessment of the nation’s economy by using the word “recover” for the first time in more than two years, according to people familiar with the BOJ’s discussions.

EUR / USD: during the Asian session the pair traded in the range of $ 1.2765/85

GBP / USD: during the Asian session the pair traded in the range of $ 1.4840/80

USD / JPY: during the Asian session the pair fell below Y101.00

Tuesday sees a muted day of data and scheduled speakers - at least until Fed Chairman Bernanke speaks tonight. Early data sees the release of German final June HICP data. Analysts are looking for an increase of 0.1% on month and a rise of 1.9% on year. At 0645GMT, French data sees the release of the May current account numbers and the May industrial output data. French industrial output is seen down 0.8% on month and down 0.2% on year. Italian May industrial output numbers will be published at 0800GMT. At the same time, ECB Governing Council member Christian Noyer will give a press conference on the annual report on savings, in Paris. The US calendar gets underway at 1100GMT, with the release of the MBA Mortgage Index numbers for the July 5 week. Vice President Joe Biden opens the US-China Strategic & Economic Dialogue in Washington, starting at 1300GMT. At 1400GMT, the May Wholesale Inventories numbers will cross the wires and are seen up 0.3% on month. At 1430GMT, the EIA Crude Oil Stocks for the July 5 week are set for release. The latest FOMC Meeting Minutes will cross the wires at 1800GMT, although their importance will likely be overridden by the 2010GMT appearance of the Federal Reserve Chair Ben Bernanke, speaking to the NBER Summer Institute in Boston. At some stage through the late session, Brazil's latest Copom policy decision is expected.

Resistance 3: Y102.55 (May 29 high)

Resistance 2: Y101.85/102.15 (May 30 highs and the European session on May 29)

Resistance 1: Y101.30/55 (Jul 8 and 9 highs)

Current price: Y100.92

Support 1: Y100.75 (Jul 9 low)

Support 2: Y99.90/10 (Jul 5 low, MA (200) H1)

Support 3: Y99.50 (Jul 4 low)

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

EUR/USD $1,2786 -0,64%

GBP/USD $1,4866 -0,55%

USD/CHF Chf0,9728 +0,95%

USD/JPY Y101,08 +0,20%

EUR/JPY Y129,23 -0,45%

GBP/JPY Y150,22 -0,37%

AUD/USD $0,9172 +0,44%

NZD/USD $0,7847 +0,54%

USD/CAD C$1,0528 -0,30%

00:30 Australia Westpac Consumer Confidence July 102.2 102.1

02:00 China Trade Balance, bln June 20.4 27.8 27.1

05:00 Japan Consumer Confidence June 45.7 47.2

06:00 Germany CPI, m/m (Finally) June +0.1% +0.1%

06:00 Germany CPI, y/y (Finally) June +1.8% +1.8%

06:45 France Industrial Production, m/m May +2.2% -0.5%

06:45 France Industrial Production, y/y May -0.5% -0.1%

07:30 Australia RBA Assist Gov Debelle Speaks

14:00 U.S. Wholesale Inventories May +0.2% +0.3%

14:30 U.S. Crude Oil Inventories July -10.3

18:00 U.S. FOMC meeting minutes June

20:10 U.S. Fed Chairman Bernanke Speaks

22:30 New Zealand Business NZ PMI June 59.2

22:30 New Zealand Food Prices Index, m/m June +0.3%

22:30 New Zealand Food Prices Index, y/y June -0.1%

23:50 Japan Core Machinery Orders May -8.8% +1.9%