Euro fell against the U.S. dollar in anticipation of tomorrow's publication of data on the volume of industrial production and GDP in the eurozone.

According to the median forecast of analysts industrial production in June will grow by 0.9%, whereas in the previous month figure fell by 0.3%. GDP in the second quarter is also likely to grow by 0.2%. Recall that at its last meeting this month, the European Central Bank left its key interest rate unchanged at 0.5%.

We also add that the dollar is rising on expectations that the U.S. data, which will be released this week will give the Fed reason to start reducing the asset purchase program faster.

Investors and analysts believe that the short-term prospects for the dollar are determined by output data, including retail sales on Tuesday - expected strong data.

Earlier this year, discussing the possibility of reducing the stimulus from the Fed propped up the dollar, but in the last week, the dollar was down due to lower expectations reduction of redemption of bonds by the Fed in September.

The yen fell against the dollar, although it has regained some lost ground. Note that this trend was accompanied by a release of the report on Japan's GDP. As shown by the data, which were presented by the Cabinet Office, in the past quarter gross domestic product grew by 2.6 percent year on year after expanding 3.8 percent in the previous quarter. The median estimate of economists, growth was up 3.6 percent. Nominal GDP growth, unadjusted for price changes, accelerated to 2.9 percent year on year.

In the second quarter, the growth was driven by private consumption, public investment and net exports, today's report showed. Consumer spending, which accounts for about 60 percent of the economy, rose 0.8 percent from the previous quarter. Deflator of gross domestic product, the broadest measure of prices throughout the economy, fell 0.3 percent in the period from April to June compared with a year earlier, the smallest decline since the third quarter of 2009. In June, prices rose 0.4 percent from a year earlier, this is the highest level since 2008.

In general, data from Japan can not be called negative: GDP growth in its third quarter in a row, although it is weaker than expected. We also add that the yen, which has traditionally been seen as a defensive asset in the period of market turmoil, could be supported if the Japanese stock market will continue to decline on weak economic data. On the other hand, follow consider the possibility of intervention of the Bank of Japan to further easing of monetary policy in the event of data weak data, and it can life negative for the yen.

EUR/USD $1.3100, $1.3300, $1.3375, $1.3400, $1.3445/50

USD/JPY Y96.00, Y97.10, Y97.15

GBP/USD $1.5450, $1.5600, $1.5615

GBP/JPY Y150.00

EUR/CHF Chf1.2275

AUD/USD $0.9100, $0.9150

USD/CAD C$1.0300, C$1.0380

New Zealand's house prices declined in July from a month earlier, a report from the Real Estate Institute of New Zealand showed Monday.

The national median house prices fell 2.3 percent month-on-month to NZ$385,000 in July. However, house prices increased 6.6 percent compared to July 2012.

The REINZ stratified housing price index, which adjusts for some of the variations in mix that can impact on the median price, was 8.6 percent higher than in July 2012 and fell 0.5 percent compared to June.

There were 6,777 unconditional residential sales in July, a 14.7 percent increase on July 2012 and an increase of 10.5 percent compared to June. This was the best result for the month of July in six years.

However, the market continued to experience a significant shortage of listings, the report said.

EUR/USD

Offers $1.3480/85, $1.3450, $1.3430/35, $1.3410/20, $1.3390/400, $1.3380, $1.3350/55, $1.3330/35

Bids $1.3285/75, $1.3235/30

GBP/USD

Offers  $1.5620/30, $1.5595/605, $1.5580, $1.5550/60

Bids $1.5455/50, $1.5440/25, $1.5405/00, $1.5390, $1.5375

AUD/USD

Offers $0.9315/20, $0.9300, $0.9250, $0.9229/25, $0.9185/90

Bids $0.9140/35, $0.9130/25, $0.9100, $0.9091/85, $0.9080, $0.9050

EUR/GBP

Offers stg0.8675, stg0.8665, stg0.8640/45, stg0.8620/30

Bids stg0.8580/75, stg0.8540, stg0.8500, stg0.8485/80

EUR/JPY

Offers Y129.80, Y129.50, Y129.15/20

Bids Y128.20, Y127.90, Y127.50, Y127.20, Y127.00

USD/JPY

Offers Y98.00, Y97.45/50, Y97.15/20, Y96.90/00

Bids Y96.40/35, Y96.20, Y95.95/90, Y95.80, Y95.50, Y95.00

Switzerland's retail sales turnover increased for the third consecutive month in June, provisional results from the Federal Statistical Office showed Monday.

Real turnover grew 2.3 percent from a year ago, following May's 1.5 percent rise. Similarly, excluding fuel sales, overall turnover climbed at a faster pace of 2 percent after increasing 1.6 percent in May.

Sales of food, drinks and tobacco registered a 1.3 percent fall in turnover, while non-food sector logged an annual increase of 4 percent.

Month-on-month, real retail turnover gained 0.5 percent, offsetting the 0.3 percent drop in May. But turnover excluding fuel, advanced 0.3 percent, it said.

Japan's gross domestic product added just 0.6 percent in the second quarter of 2013 compared to the previous three months, the Cabinet Office said in Monday's preliminary report.

The headline figure missed forecasts for an increase of 0.9 percent, which would have been unchanged from the first quarter.

On a yearly basis, GDP was up 2.6 percent - well shy of expectations for 3.6 percent following the 4.1 percent gain in Q1.

Nominal GDP was up 0.7 percent on quarter, also missing forecasts for an increase of 1.0 percent following the 0.6 percent gain in the previous quarter.

The GDP deflator was down 0.3 percent on year versus forecasts for a contraction of 0.7 percent after falling 1.1 percent in the three months prior.

Private consumption added an annual 0.8 percent, beating forecasts for 0.5 percent after rising 0.9 percent in the previous three months.

Capital expenditure fell 0.1 percent on year - well shy of expectations for a 0.7 percent increase after sliding 0.3 percent in Q1.

Upon the release of the data, Japan's Economics Minister Akira Amari told reporters that the numbers show Prime Minister Shinzo Abe's economic policies are slowly starting to have the desired effect of healing the economy.

Amari added that the government must continue to support business spending, which remains weaker than expected.

Also on Monday, the Bank of Japan said that an index measuring the prices of domestic corporate goods in Japan was up 0.5 percent in July compared to the previous month, standing at 102.1.

That beat forecasts for a gain of 0.2 percent following the 0.1 percent increase in June.

On a yearly basis, corporate goods prices were up 2.2 percent, beating expectations for 1.9 percent after climbing 1.2 percent in the previous month.

Export prices were down 0.1 percent on month and 1.5 percent on year, the data showed, while import prices fell 0.5 percent on month and 0.4 percent on year.

Japan's industrial production declined 3.1 percent in June from a month ago, final data from the Ministry of Economy, Trade and Industry showed Monday. The monthly rate was revised from the previous estimate of 3.3 percent decrease.

On a yearly basis, industrial output was down 4.6 percent in June.

According to final data, shipments dropped 3.2 percent, while inventories remained flat on month in June. The inventory ratio grew by 5.9 percent.

At the same time, the capacity utilization logged a month-on-month decrease of 2.3 percent, offsetting the 2.3 percent increase seen in May.

EUR/USD $1.3100, $1.3300, $1.3400, $1.3450

USD/JPY Y97.10, Y97.15

GBP/USD $1.5600, $1.5615

GBP/JPY Y150.00

EUR/CHF Chf1.2275

AUD/USD $0.9100, $0.9150

USD/CAD C$1.0380

02:00 New Zealand REINZ Housing Price Index, m/m July 0.0% -0.5%

04:30 Japan Industrial Production (MoM) (Finally) June -3.3% -3.1% -3.1%

04:30 Japan Industrial Production (YoY) (Finally) June -4.8% -4.8% -4.6%

The Dollar Index rose for a second day before U.S. data forecast to show retail sales rose a fourth consecutive month, adding to the case for the Federal Reserve to reduce stimulus which tends to debase the currency. Retail sales in the U.S. probably climbed 0.3 percent in July after a 0.4 percent advance in June, according to the median forecast of economists surveyed by Bloomberg News before Commerce Department figures tomorrow. The Fed is buying $85 billion of Treasuries and mortgage debt each month to put downward pressure on interest rates.

The yen swayed between gains and losses as investors speculated how slower-than-forecast economic growth in Japan would shape Prime Minister Shinzo Abe’s decision on whether to raise the sales tax. In Japan, GDP (JGDPAGDP) expanded an annualized 2.6 percent in the second quarter, compared with a revised 3.8 percent increase in the first, Cabinet Office data showed today. Economists surveyed by Bloomberg had forecast 3.6 percent growth.

The 17-nation euro rallied from the lowest in six weeks against the Japanese currency before reports which may show industrial production and gross domestic product in the currency bloc rebounded. Economists in a separate Bloomberg poll estimate a report tomorrow will show industrial output in the euro area grew 0.9 percent in June from the month before, when it fell 0.3 percent. The region’s GDP probably grew 0.2 percent in the second quarter from the previous three months, another survey showed before data due on Aug. 14. The European Central Bank left its benchmark interest rate unchanged this month at 0.5 percent.

EUR / USD: during the Asian session the pair fell to $1.3315

GBP / USD: during the Asian session the pair fell below $1.5500

USD / JPY: during the Asian session the pair rose to Y96.65

As policy makers and central bankers continue to enjoy the Summer sunshine, traders at their desks have a very limited calendar to focus on Monday. However, the data calendar picks up on both sides of the Atlantic as the week moves on. Early European data sees the release of the French June current account data at 0645GMT. At 0715GMT, Swiss June retail sales data will cross the wires. Economists are looking for a reading in line with May's 1.8% y/y increase.

02:00 New Zealand REINZ Housing Price Index, m/m July 0.0% -0.5%

04:30 Japan Industrial Production (MoM) (Finally) June -3.3% -3.1%

04:30 Japan Industrial Production (YoY) (Finally) June -4.8% -4.8%

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

07:15 Switzerland Retail Sales Y/Y June +1.8% +1.9%

18:00 U.S. Federal budget July 116.5 -95.3

23:01 United Kingdom RICS House Price Balance July 21% 25%

23:50 Japan Core Machinery Orders June +10.5% -7.1%

23:50 Japan Core Machinery Orders, y/y June +16.5% +2.6%

23:50 Japan Monetary Policy Meeting Minutes