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.

European stocks erased their decline in the final half an hour of trading, leaving the Stoxx Europe 600 Index little changed at its highest level in a month.

Commodity producers slid as the release fueled concern about the slowdown in the world’s second-biggest economy.

A report from the General Administration of Customs in Beijing showed that China’s exports fell 3.1 percent in June from a year earlier. The median estimate in a Bloomberg News survey had called for a 3.7 percent gain. Imports dropped 0.7 percent last month, compared with the median projection of a 6 percent increase.

In the U.S., the Federal Reserve releases the minutes of its June meeting at 2 p.m. in Washington today. Speaking after that meeting, Chairman Ben S. Bernanke said the central bank may reduce the pace of its $85 billion in monthly bond buying later in 2013, and may halt purchases in the middle of 2014 if the U.S. economy performs as the Fed forecasts.

National benchmark indexes fell in 10 of the 18 western-European markets today. The U.K.’s FTSE 100, Germany’s DAX and France’s CAC 40 all slipped 0.1 percent.

K+S AG decreased 4 percent to 27.19 euros after UBS downgraded Europe’s largest potash maker to sell from neutral. Analysts led by Joe Dewhurst predicted that declining earnings will reduce cash returns to investors until 2018.

Gagfah SA slumped 6.5 percent to 8.75 euros, its biggest decrease in 18 months. Germany’s second-biggest residential landlord said it sold 9.5 million new shares and 10.5 million existing treasury shares at 8.85 euros apiece. Fortress Investment Group LLC sold 20 million shares in the company, taking its stake to about 49 percent, according to a statement.

Burberry, the U.K. luxury-goods maker known for its trench coats, advanced 4.8 percent to 1,509 pence. Retail sales increased to 339 million pounds ($506 million) in the three months ended in June, more than the 316 million-pound median estimate of analysts surveyed by Bloomberg.

Tryg added 3.3 percent to 507.50 kroner. The Danish property and casualty insurer posted second-quarter profit before taxes of 688 million kroner ($118 million), more than the average analyst estimate of 598 million kroner.

West Texas Intermediate crude advanced to a 14-month high after U.S. inventories tumbled for a second week, bolstering speculation that a glut in the central part of the country is dissipating.

Futures increased as much as 2.1 percent after the Energy Information Administration said that supplies dropped 9.87 million barrels to 373.9 million. The report was projected to show a 3.2 million-barrel fall, according to the median of 11 analyst responses in a survey.

Crude production rose 1.8 percent to 7.4 million barrels a day last week, the most since January 1992, the EIA said. Production 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.

Stockpiles at Cushing, Oklahoma, the delivery point for WTI. Inventories at the hub dropped 2.69 million barrels to 47 million last week, the report showed. Supplies reached a record 51.9 million barrels in the week ended Jan. 11.

Oil also gained as political upheaval in Egypt heightened concern that unrest will spread and disrupt shipments from the Middle East.

WTI crude for August delivery rose $1.93, or 1.9 percent, to $105.46 a barrel at 10:40 a.m. on the New York Mercantile Exchange. The contract traded at $105.04 before the release of the EIA report at 10:30 a.m. in Washington. The contract touched $105.62, the highest intraday level since May 2, 2012. The volume of all futures traded was 71 percent higher than the 100-day average for this time of day.

Brent oil for August settlement increased 45 cents, or 0.4 percent, to $108.26 a barrel on the London-based ICE Futures Europe exchange. The volume for all contracts was 23 percent above the 100-day average.

Gold prices rise on weaker dollar on the eve speech by Fed Chairman Ben Bernanke, from which the market is waiting for a hint of possible decline in bond purchases.

The spot price fell by nearly 10 percent since then, as Bernanke said in June that the U.S. economy is strong enough that the Fed could reduce the amount of bond purchases from the current $ 85 billion a month.

In addition to Bernanke's speech, investors await the publication of the minutes of the June meeting of the Fed, scheduled for 18:00 GMT.

Released on Wednesday weak Chinese trade data reinforced the fear of investors to the slowdown in the Chinese economy, which occupies the second place in the world for the consumption of gold. Export and import of China unexpectedly fell in June, according to customs data.

Stocks of the world's largest exchange-traded fund backed by gold (ETF) SPDR Gold Trust are close to a minimum of four years, as investors prefer higher yielding stocks.

The cost of the August gold futures on COMEX today rose to a high of $ 1260.80 an ounce.

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

U.S. stock-index futures were little changed as China’s trade unexpectedly shrank and investors awaited minutes of the Federal Reserve’s June policy meeting.

Global Stocks:

Nikkei  14,416.6 -56.30 -0.39%

Hang Seng 20,904.56 +221.55 +1.07%

Shanghai Composite 2,008.13 +42.67 +2.17%

FTSE  6,491.09 -21.99 -0.34%

CAC  3,837.56 -6.00 -0.16%

DAX 8,048.78 -8.97 -0.11%

Crude oil $105.41 +1.82%

Gold $1252.90 +0.56%

Upgrades:

Hewlett-Packard (HPQ) upgraded to Buy from Sell at Citigroup

Downgrades:

Other:

Google (GOOG) initiated at Buy at Citigroup

Facebook (FB) initiated at Neutral at Citigroup

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

European stocks fell, dropping at the same time with the highest level in almost a month, as a report showed that Chinese exports and imports fell unexpectedly.

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.

U.S. index futures little changed, while Asian shares rose.

The cost of K + S AG fell 4% after UBS AG recommended investors sell shares of potash.

Shares of Burberry Group Plc (BRBY) rose 4.6%, as the retail sales of the spring-summer collection of ornaments contributed to an increase in sales in the fiscal first quarter, more than expected.

The cost of Tryg A / S (TRYG) rose by 1.4% after posting better-than-expected report on profit before tax, which was associated with a reduction in expenditures.

Stoxx Europe 600 Index fell 0.3% to 293.66. Note that yesterday, the index rose to its highest level since June 10, after the financial report from the American Alcoa exceeded expectations.

We also recall that today in the U.S. Federal Reserve will present its minutes of the last meeting. Earlier this month, Federal Reserve Chairman Ben Bernanke said the central bank may reduce the rate of asset purchases later this year, and can completely stop them in about mid-2014, if the U.S. economy shows signs of significant improvement.

At the moment:

FTSE 100 6,493.45 -19.63 -0.30%

CAC 40 3,829.25 -14.31 -0.37%

DAX 8,037.91 -19.84 -0.25%

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

Asian stocks rose on speculation China will introduce measures to stimulate the economy after exports contracted by the most since 2009 as a stronger yen pulled down Japanese exporters.

Nikkei 225 14,416.6 -56.30 -0.39 %

Hang Seng 20,904.56 +221.55 +1.07 %

S&P/ASX 200 4,901.36 +19.70 +0.40 %

Shanghai Composite 2,008.13 +42.67 +2.17 %

Chow Tai Fook Jewellery Group Ltd., the world’s biggest jewelery chain had a record gain in Hong Kong after same-store sales jumped on gold demand.

Aeon Co., Japan’s largest retailer, rose 1.4 percent in Tokyo after reporting a 9.8 percent increase in first-quarter operating profit.

Fanuc Corp., a supplier of factory automation systems, slipped 1 percent, pacing losses among Japanese exporters.

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)

Change % Change Last

GOLD 1,247.50 12.60 1.02%

OIL (WTI) 104.01 0.87 0.84%

Nikkei 225 14,472.9 363,56 2,58%

Hang Seng 20,690.13 107,94 0,52%

S & P / ASX 200 4,881.65 72,12 1,50%

Shanghai Composite 1,965.45 7,18 0,37%

FTSE 100 6,513.08 +63.01 +0.98%

CAC 40 3,843.56 +19.73 +0.52%

DAX 8,057.75 +89.21 +1.12%

DJIA 15,300.30 75.65 0.50%

S&P 500 1,652.31 11.85 0.72%

NASDAQ 3,504.26 19.43 0.56%

(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%