(pare/closed(GMT +2)/change, %)

EUR/USD $1,2341 -1,37%

GBP/USD $1,5573 -1,14%

USD/CHF Chf0,9728 +1,35%

USD/JPY Y118,65 +1,90%

EUR/JPY Y146,41 +0,53%

GBP/JPY Y184,74 +0,78%

AUD/USD $0,8120 -1,19%

NZD/USD $0,7703 -1,21%

USD/CAD C$1,1632 +0,07%

(time / country / index / period / previous value / forecast)

00:30 Australia RBA Bulletin

06:45 Switzerland SECO Economic Forecasts

07:00 Switzerland Trade Balance November 3.23 2.41

09:00 Eurozone EU Economic Summit

09:00 Germany IFO - Business Climate December 104.7 105.6

09:00 Germany IFO - Current Assessment December 110.0 110.3

09:00 Germany IFO - Expectations December 99.7 100.9

09:30 United Kingdom Retail Sales (MoM) November +0.8% +0.3%

09:30 United Kingdom Retail Sales (YoY) November +4.3% +4.5%

13:30 U.S. Initial Jobless Claims December 294 297

14:45 U.S. Services PMI (Preliminary) December 56.2 57.1

15:00 U.S. Leading Indicators November +0.9% +0.6%

15:00 U.S. Philadelphia Fed Manufacturing Survey December 40.8 26.3

21:45 New Zealand Visitor Arrivals November +3.3%

The U.S. dollar traded mixed to higher against the most major currencies ahead of the Fed's interest rate decision. Investors expect that the Fed will keep its low interest rate for a longer period. They are awaiting new signs for further monetary policy in the U.S.

The U.S. consumer price inflation fell 0.3% in November, missing expectations for a 0.1% decrease, after a flat reading in October. That was largest decline since December 2008.

The declines was driven by lower gas prices. Gas prices slid 10.5% in November, the largest decline in nearly six years.

On a yearly basis, the U.S. consumer price index fell to 1.3% in November from 1.7% in October.

The U.S. consumer price inflation excluding food and energy climbed 0.1% in November, in line with expectations, after a 0.2% rise in October.

On a yearly basis, the U.S. consumer price index excluding food and energy decreased to 1.7% in November from a

The euro traded lower against the U.S. dollar. Eurozone's consumer price index dropped 0.2% in November, in line with expectations, after a flat reading in October.

On a yearly basis, Eurozone's consumer price inflation remained unchanged at 0.3% in November, in line with expectations.

Eurozone's consumer price inflation excluding food, energy, alcohol and tobacco remained unchanged at an annual rate of 0.7% in November, in line with expectations.

The British pound traded lower against the U.S. dollar despite the solid labour market data from the U.K. The U.K. unemployment rate remained uncaged at 6.0% in the August to October quarter, missing expectations for a decline to 5.9%.

The claimant count decreased by 26,900 people in November, exceeding expectations for a drop of 19,800 people, after a decrease of 25,100 people in October. October's figure was revised from a decline of 20,400.

Average weekly earnings, excluding bonuses, climbed by 1.6% in the August to October period, in line with expectations, up from a revised 1.2% rise in the previous three months.

Average weekly earnings, including bonuses, rose by 1.4% in the August to October period, beating expectations for a gain to 1.3%, after a 1.0% increase in the previous three months.

That was the first time for six years that earnings growth (both measures) has exceeded the inflation rate. The U.K. consumer price index declined to an annual rate of 1.0% in November from 1.3% in October.

The Bank of England (BoE) released its last meeting minutes. The BoE kept its monetary policy unchanged. Two members, Ian McCafferty and Martin Weale, voted for the fifth consecutive month to raise interest rates to 0.75% from 0.5%. The MPC members want to see further increases in wage growth before to raise interest rates.

The Canadian dollar traded mixed against the U.S. dollar after the weaker-than-expected Canadian wholesale sales. Wholesale sales increased 0.1% in October, missing expectations for a 0.9% gain, after a 1.8% rise in September.

The Swiss franc traded lower against the U.S. dollar. A survey by the ZEW Institute and Credit Suisse Group showed today that Switzerland's economic sentiment index rose to -4.9 points in December from -7.6 points in November.

The Swiss National Bank (SNB) released its quarterly bulletin on Wednesday. The SNB said that it will keep the exchange rate floor unchanged at 1.20 francs per euro. Switzerland's noted that deflation risks have increased that the Swiss franc is still high.

The New Zealand dollar traded lower against the U.S. dollar. In the overnight trading session, the kiwi declined against the greenback due after the current account data from New Zealand. New Zealand's current account deficit widened to NZ$5.01 billion in the third quarter from a deficit of NZ$1.08 billion in the second quarter. The second quarter's figure was revised down to a deficit of NZ$1.07 billion. Analysts had expected the current account deficit of NZ$5.32 billion.

The Australian dollar traded lower against the U.S. dollar. In the overnight trading session, the Aussie dropped against the greenback. The leading index for Australia fell 0.1% in November, down from a 0.1% rise in October. October's figure revised up from a flat reading.

The Japanese yen traded lower against the U.S. dollar in the absence of any major economic reports from Japan.

The Swiss National Bank (SNB) released its quarterly bulletin on Wednesday. The SNB said that it will keep the exchange rate floor unchanged at 1.20 francs per euro. Switzerland's noted that deflation risks have increased that the Swiss franc is still high.

Inflation forecast was revised down to 0.0% in 2014, to -0.1% in 2015 and to 0.3% in 2016. Falling oil prices weigh on inflation, so the central bank.

The SNB expects a moderate economic growth in the fourth quarter of 2014, driven by the services sector.

Statistics Canada released wholesale sales figures on Wednesday. Wholesale sales increased 0.1% in October, missing expectations for a 0.9% gain, after a 1.8% rise in September.

Lower sales volume weighed on wholesale sales. Sales volume declined 0.1% in October.

Building material and supplies rose 0.4%. Machinery, equipment and supplies climbed 0.4%.

The U.S. Labor Department released consumer price inflation data today. The U.S. consumer price inflation fell 0.3% in November, missing expectations for a 0.1% decrease, after a flat reading in October. That was largest decline since December 2008.

The declines was driven by lower gas prices. Gas prices slid 10.5% in November, the largest decline in nearly six years.

On a yearly basis, the U.S. consumer price index fell to 1.3% in November from 1.7% in October.

The U.S. consumer price inflation excluding food and energy climbed 0.1% in November, in line with expectations, after a 0.2% rise in October.

On a yearly basis, the U.S. consumer price index excluding food and energy decreased to 1.7% in November from a 1.8% gain in October.

Energy costs dropped 3.8% in November.

Gasoline prices declined 6.6% in November, while food prices rose 0.2%.

The Bank of England's Monetary Policy Committee (MPC) released its latest minutes today. Two members, Ian McCafferty and Martin Weale, voted for the fifth consecutive month to raise interest rates to 0.75% from 0.5%.

Seven of the nine MPC members voted to keep interest rate at 0.5%.

The MPC members want to see further increases in wage growth before to raise interest rates.

The BoE expects that inflation will decline below 1% due to falling oil and food prices.

EUR/USD: $1.2400(E750mn), $1.2450(E700mn), $1.2500(E2.7bn), $1.2575(E1.1bn), $1.2600(E1.3bn)

USD/JPY: Y115.00($500mn), Y116.20-25($600mn), Y116.50($1.6bn), Y116.75($410mn), Y117.00($603mn), Y117.20($560mn), Y118.25($1.4bn), Y119.50($4.8bn)

GBP/USD: $1.5630(gbp260mn)

EUR/GBP: stg0.7800(E308mn), stg0.7975(E230mn)

USD/CHF: Chf0.9390($550mn), Chf0.9500

AUD/USD: $0.8300(A$265mn)

USD/CAD: C$1.1400($1.0bn), C$1.1600($1.5bn)

Economic calendar (GMT0):

(Time/ Region/ Event/ Period/ Previous/ Forecast/ Actual)

09:30 United Kingdom Average Earnings, 3m/y October +1.0% +1.3% +1.4%

09:30 United Kingdom Average earnings ex bonuses, 3 m/y October +1.2% +1.6% +1.6%

09:30 United Kingdom ILO Unemployment Rate October 6.0% 5.9% 6.0%

09:30 United Kingdom Claimant count November -25.1 Revised From -20.4 -19.8 -26.9

09:30 United Kingdom Claimant Count Rate October 2.8% 2.7%

09:30 United Kingdom Bank of England Minutes

10:00 Eurozone Harmonized CPI November 0.0% -0.2% -0.2%

10:00 Eurozone Harmonized CPI, Y/Y (Finally) November +0.3% +0.3% +0.3%

10:00 Eurozone Harmonized CPI ex EFAT, Y/Y November +0.7% +0.7% +0.7%

10:00 Switzerland Credit Suisse ZEW Survey (Expectations) December -7.6 -4.9

The U.S. dollar traded mixed against the most major currencies ahead of the U.S. consumer inflation data and Fed's interest rate decision. The U.S. consumer price inflation is expected to decline 0.1% in November, after a flat reading in October.

The U.S. consumer price index excluding food and energy is expected to rise 0.1% in November, after a 0.2% gain in October.

The Fed will release its interest rate decision. Investors expect that the Fed will keep its low interest rate for a longer period. They are awaiting new signs for further monetary policy in the U.S.

The euro declined against the U.S. dollar after the consumer inflation data from the Eurozone. Eurozone's consumer price index dropped 0.2% in November, in line with expectations, after a flat reading in October.

On a yearly basis, Eurozone's consumer price inflation remained unchanged at 0.3% in November, in line with expectations.

Eurozone's consumer price inflation excluding food, energy, alcohol and tobacco remained unchanged at an annual rate of 0.7% in November, in line with expectations.

The British pound traded mixed against the U.S. dollar after the solid labour market data from the U.K. The U.K. unemployment rate remained uncaged at 6.0% in the August to October quarter, missing expectations for a decline to 5.9%.

The claimant count decreased by 26,900 people in November, exceeding expectations for a drop of 19,800 people, after a decrease of 25,100 people in October. October's figure was revised from a decline of 20,400.

Average weekly earnings, excluding bonuses, climbed by 1.6% in the August to October period, in line with expectations, up from a revised 1.2% rise in the previous three months.

Average weekly earnings, including bonuses, rose by 1.4% in the August to October period, beating expectations for a gain to 1.3%, after a 1.0% increase in the previous three months.

That was the first time for six years that earnings growth (both measures) has exceeded the inflation rate. The U.K. consumer price index declined to an annual rate of 1.0% in November from 1.3% in October.

The Bank of England (BoE) released its last meeting minutes. The BoE kept its monetary policy unchanged. Two members, Ian McCafferty and Martin Weale, voted for the fifth consecutive month to raise interest rates to 0.75% from 0.5%. The MPC members want to see further increases in wage growth before to raise interest rates.

The Canadian dollar traded mixed against the U.S. dollar ahead of the Canadian wholesale sales. Wholesale sales in Canada are expected to climb 0.9% in October, after a 1.8% rise in September.

The Swiss franc traded lower against the U.S. dollar despite the positive survey by the ZEW Institute and Credit Suisse Group. A survey by the ZEW Institute and Credit Suisse Group showed today that Switzerland's economic sentiment index rose to -4.9 points in December from -7.6 points in November.

EUR/USD: the currency pair fell to $1.2445

GBP/USD: the currency pair traded mixed

USD/JPY: the currency pair traded mixed

The most important news that are expected (GMT0):

13:30 Canada Wholesale Sales, m/m October +1.8% +0.9%

13:30 U.S. Current account, bln Quarter III -99 -98

13:30 U.S. CPI, m/m November 0.0% -0.1%

13:30 U.S. CPI, Y/Y November +1.7%

13:30 U.S. CPI excluding food and energy, m/m November +0.2% +0.1%

13:30 U.S. CPI excluding food and energy, Y/Y November +1.8%

14:00 Switzerland SNB Quarterly Bulletin

19:00 U.S. FOMC Economic Projections

19:00 U.S. FOMC Statement

19:00 U.S. Fed Interest Rate Decision 0.25% 0.25%

19:30 U.S. Federal Reserve Press Conference

21:45 New Zealand GDP q/q Quarter III +0.7% +0.7%

21:45 New Zealand GDP q/q Quarter III +3.9% +3.3%

EUR/USD

Offers $1.2600, $1.2550

Bids $1.2445/40, $1.2415/10, $1.2385-80

GBP/USD

Offers $1.5800, $1.5785

Bids $1.5650, $1.5600

AUD/USD

Offers $0.8250, $0.8200

Bids $0.8100, $0.8050, $0.8000

EUR/JPY

Offers Y147.80, Y147.50, Y146.80/00, Y146.50

Bids Y145.50, Y145.25/20, Y145.00, Y144.50

USD/JPY

Offers Y118.50, Y117.80/00

Bids Y117.00, Y116.50, Y116.05/00, Y115.50

EUR/GBP

Offers stg0.8066, stg0.8020

Bids stg0.7800

The Office for National Statistics released the labour market data today. The U.K. unemployment rate remained uncaged at 6.0% in the August to October quarter, missing expectations for a decline to 5.9%.

The claimant count decreased by 26,900 people in November, exceeding expectations for a drop of 19,800 people, after a decrease of 25,100 people in October. October's figure was revised from a decline of 20,400.

Average weekly earnings, excluding bonuses, climbed by 1.6% in the August to October period, in line with expectations, up from a revised 1.2% rise in the previous three months.

Average weekly earnings, including bonuses, rose by 1.4% in the August to October period, beating expectations for a gain to 1.3%, after a 1.0% increase in the previous three months.

That was the first time for six years that earnings growth (both measures) has exceeded the inflation rate. The U.K. consumer price index declined to an annual rate of 1.0% in November from 1.3% in October.

EUR/USD: $1.2400(E750mn), $1.2450(E700mn), $1.2500(E2.7bn), $1.2575(E1.1bn), $1.2600(E1.3bn)

USD/JPY: Y115.00($500mn), Y116.20-25($600mn), Y116.50($1.6bn), Y116.75($410mn), Y117.00($603mn), Y117.20($560mn), Y118.25($1.4bn), Y119.50($4.8bn)

GBP/USD: $1.5630(gbp260mn)

EUR/GBP: stg0.7800(E308mn), stg0.7975(E230mn)

USD/CHF: Chf0.9390($550mn), Chf0.9500

AUD/USD: $0.8300(A$265mn)

USD/CAD: C$1.1400($1.0bn), C$1.1600($1.5bn)

MARKETWATCH

What Wall Street's big-money managers predict for 2015

Buy Japan. Buy Europe. Buy technology. Avoid energy. Avoid Russia.

That's what the Big Money is saying as we get ready for the new year. This is according to the latest in-depth survey of institutional money managers conducted by Bank of America Merrill Lynch. In total, the poll-takers interviewed over 150 professional investment managers around the world with nearly $450 billion in assets under management.

Source: http://www.marketwatch.com/story/what-wall-streets-big-money-managers-predict-for-2015-2014-12-17

BLOOMBERG

Fed Won't Stop Gold's Recovery in '15, ANZ Says as Asia Buys

Gold prices will recover next year as demand in China and India improves, according to Australia & New Zealand Banking Group Ltd., which forecast an advance for bullion even as the Federal Reserve raises interest rates.

Source: http://www.bloomberg.com/news/2014-12-17/fed-won-t-stop-gold-s-recovery-in-15-anz-predicts-citing-asia.html

BBC

Rouble regains ground as trading remains nervous

Russia's rouble has regained ground from Tuesday's all-time low, although trading remains edgy and volatile.

It opened 4% lower on Wednesday, but edged up. In early trading, one US dollar bought 66 roubles, far fewer than the record low of 79 on Tuesday.

Source: http://www.bbc.com/news/business-30512079

BUSINESSSPECTATOR

Oil prices skid ahead of Fed meeting

US oil prices resumed their downward slide in Asian trade on Wednesday, and Brent crude stayed below the key $US60 mark, as markets braced for the outcome of the US Federal Reserve meeting later in the day.

The market expects the Fed to change some of the language in its policy statement, when it concludes its two-day meeting, to signal that a rate hike is likely in mid-2015. Commodity markets, which have benefited from the easing of US monetary policy in the last few years, could come under pressure if the Fed tightens its stance. Analysts also expect an upward revision to US GDP growth forecasts in response to the slump in oil prices.

Source: https://www.businessspectator.com.au/news/2014/12/17/markets/oil-prices-skid-ahead-fed-meeting

The greenback traded stronger against its major peers as the two day policy meeting of the FED started yesterday. U.S. policy makers could open the door for an interest rate hike in the middle of next year dropping its "considerable time" guidance from its minutes. Markets await data on U.S. CPI and the Current Account at 13:30 GMT and later in the session the FED's Interest Rate Decision and FOMC press conference.

The Australian dollar slumped and hit a new four year low. Yesterday the Reserve Bank of Australia (RBA) released its minutes from December's monetary policy meeting on Tuesday. The RBA said that gross domestic product growth will be below trend over 2014/15, but will pick up towards the end of 2016. The RBA noted that "very low interest rates had supported activity in the housing market". The central bank said that "subdued labour market conditions were likely to weigh on consumption growth and consumer confidence more generally". The RBA members pointed out that "further exchange rate depreciation was likely to be needed to achieve balanced growth in the economy". They noted that monetary policy easing is possible during 2015. Australia's central bank reiterated that "the most prudent course was likely to be a period of stability in interest rates". The Westpac Leading Index had a negative reading of -0.1% compared with +0.1% in October.

New Zealand's dollar traded negative against the greenback. New Zealand's Current Account for the third quarter was better than expected with a reading of -5.01 compared to forecasts of -5.32. Markets await data on GDP for the third quarter being published late in the day at 21:45 GMT.

The Japanese yen weakened in Asian trade retreating from a 1-month high despite a better-than-expected Merchandise Trade Balance with a reading of -925.0, compared to forecasts of -990.0. In previous sessions the Japanese currency was supported by weak economic data making the yen an attractive safe haven.

EUR/USD: the euro lost against the greenback

(time / country / index / period / previous value / forecast)

09:30 United Kingdom Average Earnings, 3m/y October +1.0% +1.3%

09:30 United Kingdom Average earnings ex bonuses, 3 m/y October +1.3% +1.6%

09:30 United Kingdom ILO Unemployment Rate October 6.0% 5.9%

09:30 United Kingdom Claimant count November -20.4 -19.8

09:30 United Kingdom Claimant Count Rate October 2.8%

09:30 United Kingdom Bank of England Minutes

10:00 Eurozone Harmonized CPI November 0.0% -0.2%

10:00 Eurozone Harmonized CPI, Y/Y (Finally) November +0.3% +0.3%

10:00 Eurozone Harmonized CPI ex EFAT, Y/Y November +0.7% +0.7%

10:00 Switzerland Credit Suisse ZEW Survey (Expectations) December -7.6

13:30 Canada Wholesale Sales, m/m October +1.8% +0.9%

13:30 U.S. Current account, bln Quarter III -99 -98

13:30 U.S. CPI, m/m November 0.0% -0.1%

13:30 U.S. CPI, Y/Y November +1.7%

13:30 U.S. CPI excluding food and energy, m/m November +0.2% +0.1%

13:30 U.S. CPI excluding food and energy, Y/Y November +1.8%

14:00 Switzerland SNB Quarterly Bulletin

15:30 U.S. Crude Oil Inventories December +1.5

19:00 U.S. FOMC Economic Projections

19:00 U.S. FOMC Statement

19:00 U.S. Fed Interest Rate Decision 0.25% 0.25%

19:30 U.S. Federal Reserve Press Conference

21:45 New Zealand GDP q/q Quarter III +0.7% +0.7%

21:45 New Zealand GDP q/q Quarter III +3.9% +3.3%

EUR / USD

Resistance levels (open interest**, contracts)

$1.2590 (3390)

$1.2572 (2777)

$1.2543 (1502)

Price at time of writing this review: $ 1.2485

Support levels (open interest**, contracts):

$1.2444 (435)

$1.2407 (810)

$1.2355 (2150)

Comments:

- Overall open interest on the CALL options with the expiration date January, 9 is 50855 contracts, with the maximum number of contracts with strike price $1,2500 (6810);

- Overall open interest on the PUT options with the expiration date January, 9 is 59068 contracts, with the maximum number of contracts with strike price $1,2000 (7549);

- The ratio of PUT/CALL was 1.16 versus 1.09 from the previous trading day according to data from December, 16

GBP/USD

Resistance levels (open interest**, contracts)

$1.6002 (2720)

$1.5904 (1758)

$1.5807 (1842)

Price at time of writing this review: $1.5722

Support levels (open interest**, contracts):

$1.5690 (1312)

$1.5593 (1047)

$1.5496 (960)

Comments:

- Overall open interest on the CALL options with the expiration date January, 9 is 22243 contracts, with the maximum number of contracts with strike price $1,5850 (4142);

- Overall open interest on the PUT options with the expiration date January, 9 is 17562 contracts, with the maximum number of contracts with strike price $1,5550 (1722);

- The ratio of PUT/CALL was 0.79 versus 0.79 from the previous trading day according to data from December, 16

* - The Chicago Mercantile Exchange bulletin (CME) is used for the calculation.

** - Open interest takes into account the total number of option contracts that are open at the moment.

(pare/closed(GMT +2)/change, %)

EUR/USD $1,2510 +0,59%

GBP/USD $1,5750 +0,72%

USD/CHF Chf0,9597 -0,59%

USD/JPY Y116,39 -1,22%

EUR/JPY Y145,63 -0,60%

GBP/JPY Y183,3 -0,49%

AUD/USD $0,8217 +0,09%

NZD/USD $0,7796 +0,68%

USD/CAD C$1,1624-0,40%