The U.S. dollar rose against major currencies amid improved prospects for the U.S. economy and the fall in commodity prices.

Oil prices fell on Tuesday after the U.S. Energy Department reported that the increase in oil production in North America could lead to a positive shock to the terms of the proposal. "The shock to the supply side, due to the growth of oil production in North America will have a transformative effect on the market within the next five years, as was the case with the increasing demand in China for the past 15 years", - told the agency.

The yen traded at nearly five-year lows against the U.S. currency, which reached a level of 100 yen last week, continued growth on the scale of monetary stimulus adopted in Japan in April.

Investors are watching the rise of the U.S. dollar against the yen, which was also supported by data indicating that the economic recovery in the U.S. continues.

Import prices in the U.S. in April fell by 0.5%, which corresponds to the forecast of economists. This decline is mainly due to a decline in oil prices. This is the U.S. Commerce Department reported Tuesday.

The dollar index ICE, which tracks the greenback against a basket of six other major currencies, was at 83.328 against 83.276 late Monday in New York.

The dollar index WSJ, another indicator of the value of the U.S. currency against a slightly broader basket of currencies, was at 74.90 against 74.82.

Euro earlier rose against the dollar after data showed that industrial production in the euro area in March rose by 1% adjusted for seasonal variations. But the rise of the euro against the background of the industrial production data was limited by the German ZEW economic expectations index for May, which rose by 0.1 points to 36.4. Economists had expected the index to 39.5. In April, the index fell to 36.3, while analysts were expecting it to be 43.0.

Value of the pound fell against the dollar on speculation investors reduced their holdings UK currency, before the Bank of England tomorrow will present its latest inflation forecast. Note that sterling reached a two-week low against the U.S. dollar, even after showed that house prices in the UK rose to its highest level since June 2010.

Recall also that tomorrow, Bank of England Governor Mervyn King will be the last time at a press conference in his current role. The next month it will take the post of Governor Mark Carney, who is currently the head of the Bank of Canada.

EUR/USD $1.2950, $1.2975, $1.3000, $1.3050

USD/JPY Y100.35, Y101.00, Y101.50, Y102.00

EUR/JPY Y131.00, Y132.00

GBP/USD $1.5350, $1.5375

AUD/USD $0.9900, $0.9970, $1.0000, $1.0040, $1.0200

AUD/NZD NZ$1.1980

Data

06:00 Germany CPI, m/m (Finally) April -0.5% -0.5% -0.5%

06:00 Germany CPI, y/y (Finally) April +1.2% +1.2% +1.2%

06:00 Japan Prelim Machine Tool Orders, y/y April -21.5% -24.1%

09:00 Eurozone ZEW Economic Sentiment May 24.9 27.3 27.6

09:00 Eurozone Industrial production, (MoM) March +0.4% +0.6% +1.0%

09:00 Eurozone Industrial Production (YoY) March -3.1% -2.1% -1.7%

09:00 Eurozone ECOFIN Meetings May

09:00 Germany ZEW Survey - Economic Sentiment May 36.3 39.5 36.4

09:30 Australia Annual Budget Release 2013

The single currency fell sharply, developing intra-day decline against the growing risk aversion. Analysts said the euro approached the initial goal of $ 1.3030, but attempts to increase immediately attracted sellers. However, it is unclear whether the upward correction is finished. Perhaps the market is too hurried to the speculations on the subject of yet another refi rate cut next month or the ECB move to negative interest rates on deposits, while exceeding the forecast of the European industrial production figures suggest that the ECB can not change the economic outlook in the next month.

Recall that the latest data, which were released today by Eurostat, the Statistical Office showed that up to March, industrial production increased significantly, thereby exceeded the estimates of experts, which increases the hope that the economy of the currency bloc, against all expectations, came out of the recession in the period from January to March. Recall that the official data on GDP for the first quarter will be presented tomorrow, and many economists expect a slight decrease, which will be the sixth consecutive quarterly decline and the longest period of decline on record.

According to the report, in March, industrial production increased by 1.0%, compared with an increase of 0.4% in February, which was the biggest increase since July 2011. Note that according to the average forecasts of experts, the value of this index would grow only by 0.6%.

Meanwhile, it was reported that on an annual basis, industrial production fell by 1.7%, after falling 3.1% in the previous month, which was the smallest decline since August 2012. These results suggest that industrial production rose by 0.3% in the first quarter, rebounded slightly after 2.1% fall in the last three months of 2012.

Value of the pound fell against the dollar on speculation investors reduced their holdings UK currency, before the Bank of England tomorrow will present its latest inflation forecast. Note that sterling reached a two-week low against the U.S. dollar, even after showed that house prices in the UK rose to its highest level since June 2010.

Recall also that tomorrow, Bank of England Governor Mervyn King will be the last time at a press conference in his current role. The next month it will take the post of Governor Mark Carney, who is currently the head of the Bank of Canada.

EUR / USD: during the European session, the pair dropped to $ 1.2944

GBP / USD: during the European session, the pair fell to $ 1.5267

USD / JPY: during the European session, the pair rose to Y101.74

At 12:30 GMT the United States will present the import price index for April. At 20:30 GMT the United States will announce the change in the volume of crude oil, according to API. At 23:50 GMT Japan will release the index of activity in the services sector in March.

EUR/USD

Offers $1.3095/100, $1.3050-70, $1.3025/35

Bids $1.2935, $1.2915/00, $1.2880/75

GBP/USD

Offers $1.5480/85, $1.5450/55, $1.5400/20, $1.5380, $1.5350/60

Bids $1.5285/75, $1.5265-50, $1.5230/20, $1.5205/195

AUD/USD

Offers $1.0090/00, $1.0070/80, $1.0050, $1.0015/20, $1.0000/10

Bids $0.9920, $0.9900, $0.9850, $0.9800

EUR/JPY

Offers Y133.50, Y133.00, Y132.50, Y132.25/30

Bids Y131.60/50, Y131.30, Y131.10/00, Y130.80, Y130.50

USD/JPY

Offers Y102.50, Y102.25, Y102.00, Y101.80/85

Bids Y101.25/20, Y101.00, Y100.80, Y100.60/50, Y100.20

EUR/GBP

Offers stg0.8545/50, stg0.8530/35, stg0.8500/10

Bids stg0.8460, stg0.8435/25, stg0.8410/00

EUR/USD $1.2950, $1.2975, $1.3000, $1.3050

USD/JPY Y100.35, Y101.00, Y101.50, Y102.00

EUR/JPY Y131.00, Y132.00

GBP/USD $1.5350, $1.5375

AUD/USD $0.9900, $0.9970, $1.0000, $1.0040, $1.0200

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The yen rallied from the lowest level in more than four years against the dollar as technical indicators signaled its recent decline was too rapid. The yen's 14-day relative strength index versus the dollar yesterday fell below the 30 level which indicates an asset price has fallen too rapidly and it may be poised to reverse course. The Japanese currency's RSI against the euro was at 33.

The yen touched the weakest since October 2008 yesterday as the U.S. economy showed continued signs of recovery and Treasury yields touched a seven-week high. U.S. 10-year Treasury yields touched 1.94 percent yesterday, the highest level since March 26. The MSCI Asia Pacific Index of stocks gained 0.4 percent today.

The euro advanced today, snapping a three-day decline, before data forecast to show German investor confidence rose this month. The ZEW Center for European Economic Research in Mannheim will probably say its index of investor and analyst expectations, which aims to predict economic developments six months in advance, rose to 40 from 36.3 in April, according to the median estimate of economists surveyed by Bloomberg News before the data today.

The Australian and New Zealand dollars climbed as gains in Asian stocks boosted demand for riskier assets.

EUR / USD: during the Asian session, the pair rose to $ 1.3025

GBP / USD: during the Asian session, the pair rose to $ 1.5330

USD / JPY: during the Asian session, the pair fell to Y101.35

Monday's calendar gets underway with a speech by Philadelphia Federal Reserve Bank President Charles Plosser, talking on the on the economic outlook in Stockholm. Also at 0600GMT, Germany's April final HICP data and the April wholesale prices index. HICP could well show easing price pressures thanks to recent falls in the oil price. On month, HICP is seen down 0.5%, up 1.1% y/y. At 0645GMT, the French March current account numbers will cross the wires, followed by Spanish April final HICP numbers at 0700GMT and Italian HICP data at 0800GMT. At 0800GMT, the IEA monthly oil market report will cross the wires. At 0900GMT, the EMU March industrial output data and the German May ZEW survey will be released. The latest ZEW survey for May will be released on Tuesday morning, which may well give us a first taste of the impact of the recent ECB policy action and the promise of more of the same on business sentiment in Germany. Analysts are looking for the sentiment indicator to come in at 40.0 and Store Sales for the May 11 week are due for release. At 1600GMT, ECB Executive Board member Joerg Asmussen will deliver a speech on the future of banks, in Berlin.

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

EUR/USD $1,2981 -0,07%

GBP/USD $1,5301 -0,41%

USD/CHF Chf0,9570 +0,01%

USD/JPY Y101,75 +0,14%

EUR/JPY Y132,09 +0,10%

GBP/JPY Y155,69 -0,25%

AUD/USD $0,9953 -0,71%

NZD/USD $0,8253 -0,53%

02:30 New Zealand REINZ Housing Price Index, m/m April +2.4%

06:00 Germany CPI, m/m (Finally) April -0.5% -0.5%

06:00 Germany CPI, y/y (Finally) April +1.2% +1.2%

06:00 Japan Prelim Machine Tool Orders, y/y April -21.5%

09:00 Eurozone ZEW Economic Sentiment May 24.9 27.3

09:00 Eurozone Industrial production, (MoM) March +0.4% +0.6%

09:00 Eurozone Industrial Production (YoY) March -3.1% -2.1%

09:00 Eurozone ECOFIN Meetings May

09:00 Germany ZEW Survey - Economic Sentiment May 36.3 39.5

09:30 Australia Annual Budget Release 2013

12:30 U.S. Import Price Index April -0.5% -0.5%

20:30 U.S. API Crude Oil Inventories May +0.7

23:50 Japan Tertiary Industry Index March +1.1% -0.6%