The euro rose against the dollar, helped by a report on Germany. Final data , which were presented to the Federal Statistical Office showed that inflation in Germany, agreed to the procedure of the EU , has increased markedly in November , and confirmed preliminary estimates.

According to the report , inflation in accordance with the harmonized consumer price index rose to 1.6 percent in November from 1.2 percent in October . November figure corresponded to preliminary estimates . On a monthly basis the harmonized index of consumer prices increased in November by 0.2 percent , compared with a decline of 0.3 percent in the previous month . The result was in line with a preliminary estimate .

Meanwhile, the Department of Statistics reported that the consumer price index rose in November by 1.3 percent per annum , and confirmed earlier estimates and forecasts of experts . This followed growth of 1.2 percent in October . On a monthly basis , consumer prices rose by 0.2 percent , which corresponds to the initial estimates , and the expectations of economists. Recall that in October , prices fell by 0.2 percent.

Pound declined significantly against the dollar, despite the fact that Britain's economic calendar is empty today . Add that many market participants were waiting for the intervention of the Bank of England Huila .

The recent rise in inflation expectations among Britons is not a cause for concern , said Will. In August, representatives of the Bank of England pledged not to raise key interest rate until the unemployment rate in the UK has been reduced to 7% threshold , which, according to representatives of the Bank is unlikely to be achieved until 2015 , although the condition of these guidelines was that inflation expectations are stable.

Weale said that only if the recent rise in inflation expectations would be sustainable, it will come to the conclusion that the reference did not load. In his speech, Weale said that benchmarks stimulate the UK economy , but their effects are likely to moderate. According to him, if you want to increase the Bank's representatives to stimulate the UK economy as the main tool for this is to buy assets. For three years the Bank of England quantitative easing bought assets at 375 billion pounds ( 616.5 billion U.S. dollars) , mainly government bonds.

In addition, the course of trade continued to influence yesterday's statement of the Bank of England Governor Mark Carney , who noted that the UK economy needs further political support and promised to remain vigilant about the risks for the housing market . "We need to provide more incentives but these incentives can create risks" - Carney said . "We have to take other measures to reduce these risks. If we do not, we can create a big problem in the future, or we will have to pull back too soon from the current monetary policy , which we planned to spend . "

"Now begins the real recovery ," - said in an interview with Carney . - " We are faced with strong headwinds from Europe, the problems associated with currency, and on the current borrowing households. Also enterprise until you start to invest or do believe in the economic recovery . "

European stocks fell for a second day as investors weighed an accord between U.S. lawmakers to limit automatic spending reductions and avoid another government shutdown, as well as a possible cut in Federal Reserve stimulus.

U.S. Congressional negotiators reached a budget accord to limit automatic spending cuts for the next two years, remove the risk of a government shutdown like the one in October and cut the deficit by as much as $23 billion. Both the Senate and the House of Representatives must pass the deal.

The compromise, worked out between chief negotiators Senator Patty Murray and Representative Paul Ryan, would set spending at about $1.01 trillion in the current fiscal year, higher than the $967 billion required in a 2011 budget plan.

Investors are also considering when the Federal Reserve, which meets next week, may reduce the pace of its monthly bond buying. Twelve out of 35 economists surveyed by Bloomberg on Dec. 6 predicted that Fed policy makers will begin to slow the asset-buying program at their Dec. 17-18 meeting. Nine said the central bank will buy fewer bonds from its January meeting and the remaining 14 said that tapering will start in March.

National benchmark indexes retreated in 16 of the 18 western European markets. The U.K.’s FTSE 100 slid 0.2 percent, France’s CAC 40 dropped 0.1 percent and Germany’s DAX lost 0.4 percent.

Royal Bank of Scotland Group Plc lost 2.9 percent as Nathan Bostock said he will quit as chief financial officer.

Imagination Technologies Group Plc tumbled 24 percent to 190 pence, its lowest price since October 2009, after posting half-year sales that missed analysts’ estimates. The U.K. designer of chip technology for phones and tablets said sales rose to 85.2 million pounds ($139.6 million) in the period to Oct. 31, compared with the 93.3 million average estimate compiled by Bloomberg.

Natixis SA climbed 3.1 percent to 4.02 euros. Exane BNP Paribas raised its rating on the stock to outperform, similar to a buy recommendation, from neutral, citing a potential capital return and high payouts for shareholders. The French bank will probably have a dividend yield of 3.9 percent this year and 5.7 percent next year, according to data compiled by Bloomberg.

Stagecoach Group Plc advanced 2.8 percent to 372 pence, extending its gains this year to 21 percent. The bus and train operator said six-month adjusted earnings increased to 14.6 pence per share, exceeding the average analyst estimate for profit of 13.7 pence per share.

West Texas Intermediate crude pared losses after the government reported U.S. inventories tumbled the most in almost a year last week.

Prices rebounded to near a six-week high after declining 0.9 percent. The Energy Information Administration said supplies dropped 10.6 million barrels in the week ended Dec. 6. Analysts surveyed by Bloomberg had forecast a decrease of 3 million. The International Energy Agency raised estimates for 2014 global oil demand amid an economic recovery in the U.S.

WTI for January delivery slipped 37 cents, or 0.4 percent, to $98.14 a barrel at 10:43 a.m. on the New York Mercantile Exchange. It traded at $97.82 before the report and rebounded to $98.34 immediately after. The contract climbed to $98.51 yesterday, the highest settlement since Oct. 28. The volume of all futures traded was 1.8 percent below the 100-day average.

Brent for January settlement decreased 34 cents, or 0.3 percent, to $109.04 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude was at a premium of $10.90 to WTI. The spread was $10.87 yesterday, the narrowest since Nov. 8 based on closing prices.

Gold prices decline after three days of growth , but still close to three-week high , supported by a weak dollar and short covering .

Report agreement on the budget in the United States reduced the attractiveness of gold as a safe asset and physical demand in Asia weakened after a rise in prices . Analysts believe that in the near future prices will support technical buying .

Experts point out that from a technical point of view, gold should go up to $ 1,270 and then to $ 1,300 by the end of the year. However, this depends on whether the market will keep $ 1,250 resistance level , and from the Fed meeting next week.

Markets await Fed meeting on 17-18 December to see whether the central bank will start buying bonds to reduce the amount to $ 85 billion per month. Reducing incentives adversely affect gold, which is considered a hedge against inflation , but many analysts believe that investors have already taken into account in the quotations reduction incentives in December.

Gold prices were down most of 2013 against the backdrop of fears about what the completion of bond purchases by the Fed would deprive the market of a key source of support . Many investors turned to safer assets in mind fears that liquidity injections cause an increase in inflation or weaken the U.S. dollar.

Cost February gold futures on the COMEX today dropped to $ 1252.10 per ounce.

U.S. stock-index futures were little changed, after Congressional negotiators reached a budget agreement that will limit spending cuts and reduce the deficit.

Global markets

Nikkei 15,515.06 -96.25 -0.62%

Hang Seng 23,338.24 -405.95 -1.71%

Shanghai Composite 2,204.17 -33.33 -1.49%

FTSE 6,549.07 +25.76 +0.39%

CAC 4,126.11 +34.97 +0.85%

DAX 9,141.29 +26.85 +0.29%

Crude oil $98.34 (-0.17%).

Gold $1258.40 (-0.21%).

USD/JPY Y101.75, Y102.50, Y102.60, Y102.70, Y103.00, Y103.10, Y103.50

EUR/USD $1.3650, $1.3655, $1.3700, $1.3720, $1.3750

GBP/USD $1.6250, $1.6300, $1.6400

USD/CHF Chf0.9000

AUD/USD $0.9125

EUR/AUD A$1.5000

NZD/USD $0.8350

USD/CAD C$1.0580, C$1.0600

Data

6:30 France Changing the number of people employed in non-agricultural sector (final ) III m -0.1 % -0.1 % -0.1 %

7:00 Germany CPI m / m (final ) November +0.2% +0.2% +0.2%

7:00 Germany CPI y / y (final ) November +1.3% +1.3% +1.6%

11:00 Eurozone ECB representative Constancio V.

13:00 UK This member of the Committee on monetary policy the Bank of England Martin Vil

The euro exchange rate rose slightly against the dollar , retreating from session lows , helped by a report on Germany. Final data , which were presented to the Federal Statistical Office showed that inflation in Germany, agreed to the procedure of the EU , has increased markedly in November , and confirmed preliminary estimates.

According to the report , inflation in accordance with the harmonized consumer price index rose to 1.6 percent in November from 1.2 percent in October . November figure corresponded to preliminary estimates .

On a monthly basis the harmonized index of consumer prices increased in November by 0.2 percent , compared with a decline of 0.3 percent in the previous month . The result was in line with a preliminary estimate .

Meanwhile, the Department of Statistics reported that the consumer price index rose in November by 1.3 percent per annum , and confirmed earlier estimates and forecasts of experts . This followed growth of 1.2 percent in October .

On a monthly basis , consumer prices rose by 0.2 percent , which corresponds to the initial estimates , and the expectations of economists. Recall that in October , prices fell by 0.2 percent.

Pound declined significantly against the dollar, despite the fact that Britain's economic calendar is empty today . Add that many market participants were waiting for the intervention of the Bank of England Huila . In addition, the course of trade continued to influence yesterday's statement of the Bank of England Governor Mark Carney , who noted that the UK economy needs further political support and promised to remain vigilant about the risks for the housing market . "We need to provide more incentives but these incentives can create risks" - Carney said . "We have to take other measures to reduce these risks. If we do not, we can create a big problem in the future, or we will have to pull back too soon from the current monetary policy , which we planned to spend . "

"Now begins the real recovery ," - said in an interview with Carney . - " We are faced with strong headwinds from Europe, the problems associated with currency, and on the current borrowing households. Also enterprise until you start to invest or do believe in the economic recovery . "

EUR / USD: during the European session, the pair fell to $ 1.3737 , then back up to $ 1.3765

GBP / USD: during the European session, the pair fell to $ 1.6364

USD / JPY: during the European session, the pair dropped to Y102.38

At 18:01 GMT the United States places the 10 - year bonds . At 19:00 GMT the United States will submit a monthly report on the budget for November. At 20:00 GMT we will know the RBNZ decision on the basic interest rate. Also in this time will be a press conference by the RBNZ , the accompanying statement will RBNZ protocol and monetary policy of the RBNZ .

EUR/USD

Offers $1.3870/80, $1.3850/55, $1.3850, $1.3830/35, $1.3810/20, $1.3790/800

Bids $1.3740/30, $1.3715/00, $1.3670

GBP/USD

Offers $1.6550, $1.6520/30, $1.6500, $1.6470-80, $1.6425

Bids $1.6385/80, $1.6370, $1.6355/50, $1.6325/15, $1.6300/290

AUD/USD

Offers $0.9250, $0.9220, $0.9200, $0.9180, $0.9165/70

Bids $0.9105/00, $0.9080/70, $0.9050, $0.9035/30, $0.9000

EUR/GBP

Offers stg0.8500, stg0.8475/80, stg0.8440, stg0.8415/20, stg0.8395/400

Bids stg0.8355/45, stg0.8330/20, stg0.8300/290, stg0.8260/50

EUR/JPY

Offers Y142.80, Y142.50, Y142.20/30, Y141.95/00, Y141.65/70, Y141.40/50

Bids Y140.80, Y140.50, Y140.25/20, Y140.00, Y139.80

USD/JPY

Offers Y103.50, Y103.40, Y103.15/20, Y102.95

Bids Y102.40, Y102.20, Y102.00, Y101.70, Y101.50

European stocks advanced, after yesterday’s drop, as investors weighed an accord between U.S. lawmakers to limit automatic spending cuts and avoid a government shutdown. U.S. index futures were little changed, while Asian shares fell.

The Stoxx Europe 600 Index added 0.2 percent to 315.67 at 11:09 a.m. in London. The equity gauge has rallied 13 percent this year as central banks around the world pledged to leave interest rates near record lows for a prolonged period of time.

U.S. Congressional negotiators reached a budget accord to limit automatic spending cuts for the next two years, remove the risk of a government shutdown like the one in October and cut the deficit by as much as $23 billion. Both the Senate and the House of Representatives must pass the deal.

The compromise, worked out between chief negotiators Senator Patty Murray and Representative Paul Ryan, would set spending at about $1.01 trillion in the current fiscal year, higher than the $967 billion required in a 2011 budget plan.

Investors are considering when the Federal Reserve, which meets next week, may reduce the pace of its monthly bond buying. Twelve out of 35 predicted that Fed policy makers will begin to slow the asset-buying program at their Dec. 17-18 meeting. Nine said the central bank will buy fewer bonds from its January meeting and the remaining 14 said that tapering will start in March.

Natixis climbed 4.5 percent to 4.08 euros. Exane BNP Paribas raised its rating on the stock to outperform, similar to a buy recommendation, from neutral, citing a potential capital return and high payouts for shareholders. The French bank will probably have a dividend yield of 3.9 percent this year and 5.7 percent next year.

Stagecoach Group Plc (SGC) advanced 3.9 percent to 376 pence, extending its gains this year to 22 percent. The bus and train operator said six-month adjusted earnings increased to 14.6 pence per share, exceeding the average analyst estimate for profit of 13.7 pence per share.

Imagination Technologies Group Plc (IMG) tumbled 17 percent to 207.5 pence, its lowest price since December 2009, after posting half-year sales that missed analysts’ estimates. The U.K. designer of chip technology for phones and tablets said sales rose to 85.2 million pounds ($139.9 million) in the period to Oct. 31, compared with the 93.3 million average estimate.

FTSE 100 6,541.19 +17.88 +0.27%

CAC 40 4,120.7 +29.56 +0.72%

DAX 9,135.49 +21.05 +0.23%

USD/JPY Y101.75, Y102.50, Y102.60, Y102.70, Y103.00, Y103.10, Y103.50

EUR/USD $1.3650, $1.3655, $1.3700, $1.3720, $1.3750

GBP/USD $1.6250, $1.6300, $1.6400

USD/CHF Chf0.9000

AUD/USD $0.9125

EUR/AUD A$1.5000

NZD/USD $0.8350

USD/CAD C$1.0580, C$1.0600

Asian stocks fell, with the regional benchmark gauge sliding for the first time in three days, as investors weighed the timing of a reduction in the Federal Reserve’s unprecedented stimulus.

Nikkei 225 15,515.06 -96.25 -0.62%

S&P/ASX 200 5,104.25 -39.30 -0.76%

Shanghai Composite 2,204.17 -33.33 -1.49%

OZ Minerals Ltd. slumped 14 percent, the most in almost five years, after the Australian copper miner forecast production will be lower than analyst estimates.

China Coal Energy Co., the nation’s No. 2 coal producer, dropped 4.1 percent in Hong Kong after the government said it plans to curb consumption of the fuel in some areas.

Gree Inc., a Japanese mobile-game operator, surged 2.3 percent after Goldman Sachs Group Inc. raised its outlook on the stock, citing bigger-than-expected cost cuts.

The U.S. Dollar Index snapped a four-day decline after budget negotiators unveiled an agreement to ease automatic spending cuts by about $60 billion over two years and reduce the deficit by $23 billion. U.S. Senator Patty Murray, a Democrat, and Republican Representative Paul Ryan said the budget proposal avoids a government shutdown and helps the economy. A partial shutdown in October lasted for 16 days because lawmakers couldn’t agree on how to fund the government.

The yen rebounded from a six-month low versus the greenback and the weakest in five years against the euro after technical indicators signaled its recent losses were excessive. The yen’s 14-day relative strength index versus the euro was at 27, below the 30 level which indicate asset price has fallen too rapidly and it may be poised to reverse course. Its RSI against the dollar was at 37.

European Central Bank Vice President Vitor Constancio speaks in Frankfurt today. He said in an interview last month that a negative deposit rate would be invoked only in “quite extreme situations” and the council is “not really near a decision.” The central bank kept its benchmark rate unchanged at a record low on Dec. 5.

EUR / USD: during the Asian session the pair fell to $ 1.3745

GBP / USD: during the Asian session, the pair traded in the range of $ 1.6430-65

USD / JPY: on Asian session the pair fell to Y102.55

Wednesday's calendar slows somewhat, although there are still data releases on both sides of the Atlantic. The UK calendar gets underway at 0630GMT, when the French third quarter job creation data will be released. At 0700GMT, the German November final HICP numbers are set to cross the wires, with analysts looking for a month on month rise of 0.2% in HICP, higher by 1.6% on year. French October current account numbers will be released at 0745GMT. There is little in the way of scheduled central bank talk Wednesday. However, ECB Governing Council member Ewald Nowotny will hold a press conference on financial stability report, in Vienna at 0900GMT. Then, at 1100GMT, ECB Vice-President Vitor Constancio will appear on a panel at an IMF book presentation in Frankfurt. Sovereign issuance sees Germany re-open its 2-year benchmark 0.00% Dec 2015 Schatz issue for up to E5.0bln - the Deutsche Finanzagentur's final bond auction for this year. Italy plan to issue a new 12-month Dec 12, 2014 BOT.

Gold $1,262.70 +1.60 +0.13%

Oil $98.43 -0.08 -0.08%

Nikkei 225 15,611.31 -38.90 -0.25%

Hang Seng 23,744.19 -66.98 -0.28%

S&P/ASX 200 5,143.55 -0.87 -0.02%

Shanghai Composite 2,237.49 -0.71 -0.03%

FTSE 100 6,523.31 -36.17 -0.55 %

CAC 40 4,091.14 -42.96 -1.04 %

DAX 9,114.44 -80.73 -0.88 %

Dow 15,973.13 -52.40 -0.33%

Nasdaq 4,060.49 -8.26 -0.20%

S&P 500 1,802.62 -5.75 -0.32%

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

EUR/USD $1,3760 +0,17%

GBP/USD $1,6443 +0,09%

USD/CHF Chf0,8873 -0,34%

USD/JPY Y102,84 -0,42%

EUR/JPY Y141,50 -0,26%

GBP/JPY Y169,08 -0,33%

AUD/USD $0,9149 +0,43%

NZD/USD $0,8310 +0,34%

USD/CAD C$1,0601 -0,23%

06:30 France Non-Farm Payrolls (Finally) Quarter III -0.1% -0.1%

07:00 Germany CPI, m/m (Finally) November +0.2% +0.2%

07:00 Germany CPI, y/y (Finally) November +1.3% +1.3%

11:00 Eurozone ECB’s Vitor Constancio Speaks

13:00 United Kingdom MPC Member Weale Speaks

15:00 U.S. Treasury Sec Lew Speaks

15:30 U.S. Crude Oil Inventories December -5.6

19:00 U.S. Federal budget November -91.6 -154.6

20:00 New Zealand RBNZ Interest Rate Decision 2.50% 2.50%

20:00 New Zealand RBNZ Press Conference

20:00 New Zealand RBNZ Rate Statement