The euro rose sharply against the dollar, helped by positive data from Germany. The Federal Ministry of Economics and Technology reported that as a result of June's industrial production in Germany increased substantially, thereby exceeded the forecasts of most economists.

According to the report, the seasonally adjusted June industrial output rose 2.4% mom, recovering from a fall of 0.8%, which was recorded in the previous month, and revised downward. It is worth noting that according to the average estimates of experts industrial output had increased by only 0.3%, compared with the initial estimate of May at 1% decline.

In addition, it was reported that the volume of production, with the exception of the construction sector rose in June by 2.2% on a monthly basis. It should be noted that production in the construction sector was 1.6% more than in the previous month.

Compared with June 2012, industrial output adjusted for the number of working days, increased by 2%, after a 1.2% decline in May, which was revised down from 1% reduction. Add that economists estimate that industrial production was down by 0.3% per annum.

In addition, support for the single currency was a message stating that the agency Fitch Affirms Germany at 'AAA' with a stable outlook. Fitch said that the German government has exceeded the plan by some key financial goals. In 2012, the government structural balance was in surplus for the first time since reunification.

Fitch also believes that the debt / GDP ratio reached a peak. "Germany has all the ingredients to reduce the national debt - said in a statement. - The economy is growing, the state budget is relatively favorable, nominal interest rates at low levels. In addition, despite the fact that the debt / GDP ratio of 81.9% is higher than average for countries with a rating of 'AAA', 49%, it is within the acceptable range. "

The yen rose against the start today of the Bank of Japan. It is expected that the bankers will refrain from expanding existing monetary stimulus to devalue the yen this year against the dollar by 11%. Recall that in the present Central Bank of Japan monthly purchases of more than 7 trillion yen ($ 72 billion) of government bonds to two years to disperse percent inflation rate to 2%.

Additional impact on the market have the statements of the last Dallas Fed Richard Fisher, and Chicago Fed President Charles Evans. In particular, Richard Fisher, one of the chief critics of QE, said that the Fed is close to the beginning of the process of reducing the volume of quantitative easing, while Charles Evans said that does not rule out the possibility of narrowing the program of redemption of bonds on which month is spent $ 85 billion, already at the September meeting.

The British pound rose significantly against major currencies, which was associated with the application of the Bank of England, which revealed the plans for the future monetary policy of the central bank, noting that the key interest rate will remain at a record low of 0.5% until while the unemployment rate in the UK has fallen to 7%.

Add that also helped strengthen the currency of the Bank of England comments Mark Carney, who said that gross domestic product will not reach its pre-crisis level in the coming year. He also added that the Monetary Policy Committee will continue to pursue a policy change to secure economic growth.

The transition to economic thresholds is another innovation in the policies of the Bank of England. While the economy is showing signs of strengthening, the central bank said the new tactic is to reduce the risk of "premature" increase in short-term rates and help ensure recovery.

In addition, the monetary policy committee predicts that the most likely in the next 18-24 months, the consumer price inflation will be 0.5 percentage points higher than the 2% target, and can grow even stronger. Medium-term inflation expectations can no longer be called sustainable. The Bank of England said that if the threshold is breached, it will not mean an automatic increase in interest rates.

The central bank forecasts that economic growth will be 0.5 percent this quarter after expanding 0.6 percent in the previous three months. Gross domestic product in 2013 and 2014 will rise to 1.5 percent and 2.7 percent respectively.

European stocks fell as the Bank of England said it won’t raise interest rates or reduce bond purchases until the U.K.’s jobless rate falls below 7 percent, sparking concern it expects the economic recovery to be slow.

The Stoxx Europe 600 Index declined 0.2 percent to 302.81 at the close of trading, as Bank of England Governor Mark Carney said the U.K. economy hasn’t reached “escape velocity.” The benchmark gauge has rallied 9. percent since June 24 as the Federal Reserve, the European Central Bank and the Bank of England pledged to continue stimulus.

The Bank of England said it will seek not to raise its benchmark interest rate or reduce bond purchases until the U.K.’s unemployment rate falls below 7 percent, linking stimulus measures to a threshold for the first time. The unemployment rate was at 7.8 percent in the quarter through May and the BOE expects it will stay above 7 percent at least until the third quarter of 2016.

The BOE’s Monetary Policy Committee last week voted to maintain the bank rate at 0.5 percent, the level it has been held at since March 2009, and the stock of asset purchases at 375 billion pounds ($580 billion).

In the U.S., Fed Bank of Chicago President Charles Evans, a proponent of monetary stimulus, said late yesterday he would not rule out a decision to reduce bond purchases from September.

Fed Bank of Dallas President Richard Fisher, one of the most vocal critics of quantitative easing, said Aug. 5 that policy makers were “closer to execution mode” in considering the right time to begin reducing purchases.

National benchmark indexes retreated in 11 of the 18 western-European markets. The U.K.’s FTSE 100 slipped 1.4 percent, while Germany’s DAX Index lost 0.5 percent. France’s CAC 40 rose 0.2 percent.

Natixis declined 3.8 percent to 3.79 euros, its biggest decrease since Feb. 4. Quarterly net income on a pro-forma basis dropped to 248 million euros ($330 million). The bank took a 20 million-euro charge on its debt, after booking a 91 million-euro gain in the year-earlier period.

Rexel slid 4.2 percent to 18.15 euros. Ray Investment SARL sold 28.8 million shares at 18.25 euros each in the electrical-equipment distributor, according to a personal familiar with the sale. Ray Investment now holds 60.8 million shares, or more than 21 percent, in the company.

Randgold Resources retreated 1.4 percent to 4,366 pence. The gold producer said second-quarter profit slumped 61 percent from a year earlier to $46.3 million, while sales declined 27 percent to $252.8 million.

ING, which received a 10 billion-euro government bailout in 2008, gained 5.1 percent to 8.26 euros. Underlying pretax profit for the banking unit rose 14 percent to 1.15 billion euros in the second quarter as the interest margin improved and cost cuts paid off, the biggest Dutch financial-services company said.

West Texas Intermediate crude dropped for a fourth day after a government report showed inventories of gasoline and distillate fuels unexpectedly increased.

Futures fell as much as 0.7 percent. The Energy Information Administration said gasoline inventories rose 135,000 barrels to 223.6 million last week. Stockpiles were forecast to decrease 500,000 barrels, according to the median of 11 analyst estimates in a Bloomberg survey. Distillate supplies, which include diesel and heating oil, gained 469,000 barrels to 126.5 million. They were estimated to remain unchanged from the prior week, the survey showed.

Inventories of crude oil fell 1.32 million barrels to 363.3 million, the department said. Supplies were forecast to slide 1.5 million barrels. They surged to 397.6 million on May 24, the most since 1931, according to the EIA, the Energy Department’s statistical unit.

Crude production rose 0.2 percent to 7.56 million barrels a day last week, the highest level since December 1989, the EIA said. Output has surged as the combination of horizontal drilling and hydraulic fracturing, or fracking, has unlocked supplies trapped in shale formations in the central part of the country.

WTI crude for September delivery fell 28 cents, or 0.3 percent, to $105.02 a barrel at 10:48 a.m. on the New York Mercantile Exchange. The contract traded at $105.43 before the release of the EIA report at 10:30 a.m. in Washington. The volume of all futures traded was 12 percent below the 100-day average.

Brent oil for September settlement dropped 60 cents, or 0.6 percent, to $107.58 a barrel on the ICE Futures Europe exchange. Volume was 18 percent above the 100-day average. The European benchmark grade traded at a $2.56 premium to WTI, down from $2.88 yesterday.

Gold prices are close to the minimum of three weeks after the publication of strong U.S. trade data and comments Fed officials that have increased fears that the central bank will reduce the incentives in September.

From the beginning, gold fell by nearly 25 percent after 12 years of growth, as the market expects the Fed to reduce ongoing program of buying up bonds. In a seasonal decline in demand in the physical market, investors are closely watching the U.S. macroeconomic statistics. The U.S. trade deficit in June fell to a minimum of 3.5 years $ 34.22 billion.

The president of the Federal Reserve Bank of Chicago Charles Evans reiterated on Tuesday that the central bank may begin reducing incentives in September or later in the year depending on economic data.

Chinese gold imports from Hong Kong's main supplier in June fell by 4 percent compared to May, but held above 100 tons. Premiums in India on Tuesday declined due to lack of demand in the physical market, while traders use stockpiles in the absence of new imports.

The cost of the October gold futures on COMEX today rose to $ 1285.80 per ounce.

EUR/USD $1.3115, $1.3200, $1.3250, $1.3270/75, , $1.3300, $1.3330, $1.3400

USD/JPY Y96.95, Y98.60

GBP/JPY Y150.35, Y150.50

GBP/USD $1.4980, $1.5300, $1.5325, $1.5400, $1.5480, $1.5500

EUR/GBP stg0.8570, stg0.8600, stg0.8700

EUR/CHF Chf1.2310, Chf1.2400

AUD/USD $0.8950, $0.9000, $0.9030, $0.9130

EUR/AUD A$1.4950

U.S. futures fell amid new talk that the Federal Reserve may soon begin easing its stimulus measures.

Global Stocsk:

Nikkei 13,824.94 -576.12 -4.00%

Hang Seng 21,588.84 -334.86 -1.53%

Shanghai Composite 2,046.78 -13.72 -0.67%

FTSE 6,547.06 -57.15 -0.87%

CAC 4,040.07 +7.50 +0.19%

DAX 8,270.37 -29.36 -0.35%

Crude oil $105.20 -0.09%

Gold $1278.80 -0.29%

The Bank of England released its interest rate decision today. The BoE's interest rate remained unchanged at 0.50% and asset purchase facility program at £375 billion. This decision was widely expected.

Britain's central bank released no statement. Investors will have to wait for the release of MPC votes on August, 20 to know if any MPC members voted in favour of hiking interest rate.

Market participant expect the BoE will raise its interest rate at the end of this year or in the early months in 2015.

Britain's economy is doing well this year. The economy expanded by an annualized 3.2% in the second quarter. The unemployment rate dropped to 6.5% in May. Annual inflation was 1.9% (BoE's target: 2%). But wage growth is very slow. Wages increased 0.7% in the three months to May.

Data

01:30 Australia Home Loans June +1.8% +2.2% +2.7%

01:30 Australia RBA Assist Gov Debelle Speaks

05:45 Switzerland SECO Consumer Climate Quarter II -5 -2 -9

06:45 France Trade Balance, bln June -6.0 -5.0 -4.44

07:00 Switzerland Foreign Currency Reserves July 434.9 431.0 434.9

07:15 Switzerland Consumer Price Index (MoM) July +0.1% -0.3% -0.4%

07:15 Switzerland Consumer Price Index (YoY) July -0.1% -0.1% 0.0%

09:30 United Kingdom BOE Gov Mark Carney Speaks

09:30 United Kingdom BOE Inflation Letter Quarter III

10:00 Germany Industrial Production s.a. (MoM) June -0.8% Revised From -1.0% +0.3% +2.4%

10:00 Germany Industrial Production (YoY) June -1.0% -0.3% +2.0%

The euro rose sharply against the dollar, helped by positive data from Germany. The Federal Ministry of Economics and Technology has reported that up to the month of June, industrial production in Germany increased substantially, thereby exceeded the forecasts of most economists.

According to the report, the seasonally adjusted June industrial output rose 2.4% mom, recovering from a fall of 0.8%, which was recorded in the previous month, and revised downward. It is worth noting that according to the average estimates of experts industrial output had increased by only 0.3%, compared with the initial estimate of May at 1% decline.

In addition, it was reported that the volume of production, with the exception of the construction sector rose in June by 2.2% on a monthly basis. It should be noted that production in the construction sector was 1.6% more than in the previous month.

Compared with June 2012, industrial output adjusted for the number of working days, increased by 2%, after recording 1.2% decline in May, which was revised down from 1% reduction. Add that economists estimate that industrial production was down by 0.3% per annum.

The yen fell, departing from the six-week high against the background of which began today of the Bank of Japan. It is expected that the bankers will refrain from expanding existing monetary stimulus to devalue the yen this year against the dollar by 11%. Recall that in the present Central Bank of Japan monthly purchases of more than 7 trillion yen ($ 72 billion) of government bonds to two years to disperse percent inflation rate to 2%.

Additional impact on the market have the statements of the last Dallas Fed Richard Fisher, and Chicago Fed President Charles Evans. In particular, Richard Fisher, one of the chief critics of QE, said that the Fed is close to the beginning of the process of reducing the volume of quantitative easing, while Charles Evans said that does not rule out the possibility of narrowing the program of redemption of bonds on which month is spent $ 85 billion, already at the September meeting.

The British pound rose significantly against major currencies, which was associated with the application of the Bank of England, which revealed the plans for the future monetary policy of the central bank, noting that the key interest rate will remain at a record low of 0.5% until while the unemployment rate in the UK has fallen to 7%.

Add that also helped strengthen the currency of the Bank of England comments Mark Carney, who said that gross domestic product will not reach its pre-crisis level in the coming year. He also added that the Monetary Policy Committee will continue to pursue a policy change to secure economic growth.

The transition to economic thresholds is another innovation in the policies of the Bank of England. While the economy is showing signs of strengthening, the central bank said the new tactic is to reduce the risk of "premature" increase in short-term rates and help ensure recovery.

In addition, the monetary policy committee predicts that the most likely in the next 18-24 months, the consumer price inflation will be 0.5 percentage points higher than the 2% target, and can grow even stronger. Medium-term inflation expectations can no longer be called sustainable. The Bank of England said that if the threshold is breached, it will not mean an automatic increase in interest rates.

The central bank forecasts that economic growth will be 0.5 percent this quarter after expanding 0.6 percent in the previous three months. Gross domestic product in 2013 and 2014 will rise to 1.5 percent and 2.7 percent respectively.

EUR / USD: during the European session, the pair rose from $ 1.3264 to $ 1.3324

GBP / USD: during the European session, the pair fell to $ 1.5205, after which rose to $ 1.5490

USD / JPY: during the European session, the pair rose from Y96.75 to Y97.33

At 12:30 GMT Canada will report on changes in the volume of building permits issued in June. At 14:00 GMT Canada will present from Ivey PMI index for July. At 17:00 GMT the United States places the 10-year bonds. At 23:50 GMT Japan will report on the overall current account balance and the adjusted total current account surplus in June.

EUR/USD

Offers $1.3385-410, $1.3353, $1.3345/50, $1.3330

Bids $1.3245/40, $1.3235/30, $1.3220/10, $1.3205/190, $1.3180

AUD/USD

Offers $0.9050, $0.9035/40, $0.9010/20, $0.9000, $0.8965/70

Bids $0.8907, $0.8900, $0.8880/75, $0.8820, $0.8800

GBP/USD

Offers $1.5430/35, $1.5420, $1.5400, $1.5382-86

Bids $1.5310/00, $1.5290, $1.5250/45, $1.5205/190, $1.5175

EUR/GBP

Offers stg0.8810/15, stg0.8790/00, stg0.8745, stg0.87305

Bids stg0.86475, stg0.8645/40, stg0.8605/595, stg0.8585/80

EUR/JPY

Offers Y130.50, Y130.00, Y129.55/60, Y129.20/30

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

USD/JPY

Offers Y98.50, Y98.20, Y98.00, Y97.45/50, Y97.25/30

Bids Y96.50, Y96.20, Y96.00, Y95.80

European stocks declined moderately, which is fixed for the second consecutive session, after the Bank of England has provided a benchmark for monetary policy in the form of a threshold level of unemployment. Add also revised the Bank of England to raise their economic forecasts: 1.5% in 2013 and 2.7% in 2014 against 1.2% and 1.5% previously. The Bank of England will maintain its current level of rates as long as the unemployment rate / p reaches 7.0%, the target level and not trigger level for the rate increase.

Heads of asthma Carney said that Britain is in the middle of the slowest economic recovery in history, and that GDP will not reach pre-crisis peak until next year. As long as the employment does not reach the target level, the Bank of England is not going to expand the asset purchase program, but they are ready to buy more bonds, if need be. He said that 7% is the target level of rates b / d, it may be lower, but it corresponds to the current monetary policy. Carney also said that the Bank of England will link the level of the rate with the rate b / d of 7%. He also noted that "transparency policy" does not mean that rates will be low long period of time, it will depend on economic conditions.

Adding that the dynamics of trade continues to affect yesterday's announcement of the Federal Reserve Bank of Dallas, Richard Fisher, who is one of the most vocal critics of quantitative easing. He noted that the central bank is coming to a reduction in monthly purchases of bonds, the size of which is 85 billion dollars a month, and warned investors that do not rely on this promotion.

Moreover, he added that the financial markets may be too used to the Fed's policy, or hope that the central bank will ease lending after the fall of the market. Some expect that the Fed will hold back levitation markets for an indefinite period of time. This distorts the prices of financial assets and could lead to a serious misallocation of capital.

Stoxx Europe 600 Index fell 0.4% to 302.29.

The cost of Natixis SA fell by 4.03% to 3.78 euros, showing the largest decline for the month, after a report showed a 29% decline in profit for the second quarter.

Shares of Rexel SA (RXL) lost 5.3%, dropping to 17.94 euros after the largest shareholder sold a 10% stake.

The cost of Randgold Resources Ltd. fell 5.8% to 4171 pounds, after reporting a fall in sales and profits.

Shares of ING Groep NV (INGA) rose by 4.68% to 8.22 euros, while reaching a two-year high, after the quarterly report showed that the amount of pre-tax profits rose.

At the moment:

FTSE 100 6,536.78 -67.43 -1.02%

CAC 40 4,018.61 -13.96 -0.35%

DAX 8,240.8 -58.93 -0.71%

UER/USD $1.3115, $1.3200, $1.3250, $1.3270/75, , $1.3300, $1.3330, $1.3400

USD/JPY Y96.95, Y98.60

GBP/JPY Y150.35, Y150.50

GBP/USD $1.4980, $1.5300, $1.5325, $1.5400, $1.5480, $1.5500

EUR/GBP stg0.8570, stg0.8600, stg0.8700

EUR/CHF Chf1.2310, Chf1.2400

AUD/USD $0.8950, $0.9000, $0.9030, $0.9130

EUR/AUD A$1.4950

Asian stocks fell, with Japanese shares leading declines across the region as the yen gained for a fourth day and metals prices dropped.

Nikkei 225 13,824.94 -576.12 -4.00%

Hang Seng 21,573.35 -350.35 -1.60%

S&P/ASX 200 5,011.3 -94.33 -1.85%

Shanghai Composite 2,046.78 -13.72 -0.67%

Pioneer Corp.  sank 8.7 percent in Tokyo after the maker of car stereos lowered its full-year profit forecast.

BHP Billiton Ltd., the world’s biggest mining company, dropped 2 percent in Sydney after copper futures declined.

The MSCI Asia Pacific Index slid 1.9 percent to 133.26 as of 4 p.m. in Tokyo, with more than four shares falling for each that rose.

01:30 Australia Home Loans June +1.8% +2.2% +2.7%

01:30 Australia RBA Assist Gov Debelle Speaks

The yen touched a six-week high as the Bank of Japan starts a meeting today on prospects it will refrain from adding to unprecedented stimulus that’s helped to weaken the currency 11 percent against the dollar this year. The BOJ will probably remain on hold when concluding its two-day meeting tomorrow, according to all 25 economists surveyed by Bloomberg News. The central bank currently buys more than 7 trillion yen ($72 billion) of government bonds every month in its plan to foster 2 percent annual inflation in two years.

Fed Bank of Chicago President Charles Evans, who has been among the most vocal proponents of monetary accommodation, said there has been “good improvement” in the labor market and indicated that tapering of stimulus in September is possible.

The pound maintained a decline versus the euro before Bank of England Governor Mark Carney speaks today about implementing forward guidance aimed at anchoring interest rates. Carney will discuss the Monetary Policy Committee’s analysis of steering expectations today when the BOE presents its quarterly Inflation Report. The central bank said on July 4 that the expected increase in future interest rates was “not warranted by the recent developments in the domestic economy.”

The euro was 0.4 percent from a seven-week high against the dollar before German data forecast to show industrial production rose.

EUR / USD: during the Asian session the pair fell to $ 1.3290

GBP / USD: during the Asian session the pair fell to $ 1.5320

USD / JPY: during the Asian session the pair fell to Y97.10

Although there are data releases on both sides of the Atlantic Wednesday, the stand out factor will be the latest Bank of England Quarterly Inflation Report and the first QIR press briefing from Governor Mark Carney. Early data to be released from Paris includes the July Bank of France business survey and the French June foreign trade data, due at 0630GMT and the 0645GMT respectively. At 0715GMT, the Switzerland July CPI data will cross the wires. At 1000GMT, the German June industrial output data will be published. The BOE's August QIR will be released at 0930GMT, to be followed immediately by the Governor's press conference.  Across the Atlantic, the US calendar gets underway at 1100GMT, with the release of the MBA Mortgage Index data for the August 2 week. The Canadian data releases get underway from 1230GMT, when the June building permits data will be released, with economists looking for a reading of -2.8% versus +4.5% in May. At 1400GMT, the July IVEY PMI reading is set to cross the wires, with an expected reading of 57.0. At 1430GMT, the EIA Crude Oil Stocks data for the week ending August 2 are expected. There are only limited appearances slated from Fed officials, although 1740GMT sees Cleveland Federal Reserve Bank President Sandra Pianalto deliver a speech in Cleveland. Late data sees the US June Consumer Credit numbers and the July Treasury allotments released at 1900GMT.

Change % Change Last

GOLD 1,282.40 -20.20 -1.55%

OIL (WTI) 105.48 -1.08 -1.01%

Nikkei 225 14,401.06 143,02 1,00%

Hang Seng 21,952.78 -269,23 -1,21%

S & P / ASX 200 5,105.6 -5.65 -0.11%

Shanghai Composite 2,060.5 10,02 0,49%

FTSE 100 6,604.21 -15.37 -0.23%

CAC 40 4,032.57 -17.40 -0.43%

DAX 8,299.73 -98.65 -1.17%

DJIA 15,518.70 -93.39 -0.60%

S&P 500 1,697.37 -9.77 -0.57%

NASDAQ 3,665.77 -27.18 -0.74%

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

EUR/USD $1,3307 +0,35%

GBP/USD $1,5349 -0,05%

USD/CHF Chf0,9257 -0,19%

USD/JPY Y97,77 -0,48%

EUR/JPY Y130,10 -0,15%

GBP/JPY Y150,04 -0,53%

AUD/USD $0,8980 +0,53%

NZD/USD $0,7904 +0,68%

USD/CAD C$1,0374 +0,15%

01:30 Australia Home Loans June +1.8% +2.2%

01:30 Australia RBA Assist Gov Debelle Speaks

05:45 Switzerland SECO Consumer Climate Quarter II -5 -2

06:45 France Trade Balance, bln June -6.0 -5.0

07:00 Switzerland Foreign Currency Reserves July 434.9 431.0

07:15 Switzerland Consumer Price Index (MoM) July +0.1% -0.3%

07:15 Switzerland Consumer Price Index (YoY) July -0.1% -0.1%

09:30 United Kingdom BOE Gov Mark Carney Speaks

09:30 United Kingdom BOE Inflation Letter Quarter III

10:00 Germany Industrial Production s.a. (MoM) June -1.0% +0.3%

10:00 Germany Industrial Production (YoY) June -1.0% -0.3%

12:30 Canada Building Permits (MoM) June +4.5% +6.2%

14:00 Canada Ivey Purchasing Managers Index July 55.3 56.3

14:30 U.S. Crude Oil Inventories July +0.4

19:00 U.S. Consumer Credit June 19.6 15.3

23:50 Japan Current Account (adjusted), bln June 623.3 727.3