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.

European stocks advanced as companies from ICAP Plc to European Aeronautic Defence & Space Co. rallied after reporting earnings, offsetting German investor sentiment that gained less than forecast in May.

The Stoxx Europe 600 Index added 0.4 percent to 305.66 at the close of trading, its highest level since June 2008.

German investor confidence rose in May less than forecast. The ZEW Center for European Economic Research in Mannheim said its index of investor and analyst expectations, which aims to predict economic developments six months in advance, increased to 36.4 from 36.3 in April. Economists forecast a gain to 40, according to the median of 38 estimates.

Finance chiefs from the 27 members of the European Union met today in Brussels to discuss plans to create a banking union for the region. The European Central Bank's Executive Board member Joerg Asmussen called today for the EU to create a central agency and a common backstop for handling failed banks by the "summer of next year."

National benchmark indexes advanced in 14 of the 18 western European markets. The U.K.'s FTSE 100 added 0.8 percent, while France's CAC 40 rose 0.5 percent. Germany's DAX added 0.7 percent.

ICAP jumped 14 percent to 339.70 pence, the most since March 2009, as the world's largest broker of transactions between banks posted a full-year pretax profit before exceptional items of 284 million pounds ($433 million). That was higher than the 280 million pounds the company had forecast March 27.

EADS gained 3 percent to 42.44 euros as the Airbus SAS parent posted first-quarter earnings before interest, taxes and one-time items of 741 million euros ($960 million), exceeding the 607 million euros projected by analysts in a Bloomberg survey.

Aurubis AG plunged 7.4 percent to 45.65 euros, its biggest decline since January 2011. The world's second-largest producer of refined copper posted second-quarter earnings before interest and taxes of 11 million euros, missing the average analyst forecast of 15.9 million euros.

Commerzbank AG declined 6.3 percent to 9.31 euros, its lowest price in more than two decades. Germany's second-biggest bank said it is offering the right to buy 20 shares for every 21 held by investors at 4.50 euros apiece. That equates to a 55 percent discount to yesterday's price, or 38 percent below the 7.28 euros a share theoretical price the stock would have following the offer. The shares will be offered from tomorrow until May 28, the bank said on its website.

GDF Suez SA, Europe's largest utility by market value, fell 0.9 percent to 16.58 euros, paring earlier losses of as much as 4.4 percent. Groupe Bruxelles Lambert SA sold 65 million shares in GDF for 16.26 euros, less than yesterday's closing price.

West Texas Intermediate crude fluctuated after equities advanced on bullish comments from hedge-fund manager David Tepper, while analysts forecast that U.S. crude stockpiles climbed from an 82-year high.

Futures rebounded and the Standard & Poor’s 500 Index rose as Tepper, co-founder and owner of Appaloosa Management, told CNBC the economy is improving. A government report tomorrow will probably show that supplies gained 400,000 barrels last week, according to a Bloomberg survey.

North American output growth will be as significant for the global market as China’s economic boom, the International Energy Agency said today. The Energy Information Administration will probably report that U.S. gasoline stockpiles slipped by 1 million barrels last week, according to the median estimate of 11 analysts. Inventories of distillate fuel, a category that includes heating oil and diesel, climbed by 650,000 barrels, the survey showed.

North America will provide 40 percent of the world’s new supplies until 2018 through the development of light, tight oil from shale deposits and oil sands, the IEA said in its medium-term market report.

WTI oil for June delivery decreased to $94.50 a barrel on the New York Mercantile Exchange. Brent oil for June settlement rose 6 cents to $102.88 a barrel on the London-based ICE Futures Europe exchange. Volume for all contracts was 21 percent above the 100-day average.

Gold shows a slight increase in the correction after a three-day decline. In this case, the U.S. currency strengthened, as in an empty economic calendar remains of interest to U.S. traders. Recall that yesterday the U.S. issued a decent report on retail sales, and later head of the Federal Reserve Bank of Philadelphia's Plosser made a number of statements in which repeated that, in his opinion, the size of the QE program should be cut as early as next month. Both of these factors are positive for the USD, due to which today, in the absence of new drivers, steady bullish trend for the buck can be further developed.

At the same time, judging by the disappointing results of the German study, improvement in May, can not be expected, that is clearly a negative factor for the EUR. As the results of recent studies that have been presented today by the Institute of ZEW, this month the German economic expectations were generally stable, showing a slight increase, following a sharp decline in April, which likely indicates to curb the ongoing economic recession in the eurozone. According to the report, in May, the index of sentiment in the business environment has increased to the level of 36.4, compared to 36.3 points in April, which was significantly worse than the forecasts of experts at the level of 39.5.

The cost of the August gold futures on COMEX today rose to 1446.00 dollars an ounce.

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

U.S. stock futures were little changed as bullish comments from hedge-fund manager David Tepper offset concern that the pace of China's growth is slowing.

Global Stocks:

Nikkei 14,758.42 -23.79 -0.16%

Hang Seng 22,930.28 -59.53 -0.26%

Shanghai Composite 2,217.01 -24.91 -1.11%

FTSE 6,642.35 +10.59 +0.16%

CAC 3,942.11 -3.09 -0.08%

DAX 8,300.67 +21.38 +0.26%

Crude oil $94.84 -0.35%

Gold $1423.00 - 0.79%

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

European stocks declined for a second day, led by a retreat in mining shares, as concern grew China's economy will slow and German investor sentiment gained less than estimated in May. U.S. futures fell, while Asian shares rose.

The Stoxx Europe 600 Index lost 0.5 percent to 303.08 at 10:08 a.m. in London.

German investor confidence rose less than economists forecast in May. The ZEW Center for European Economic Research in Mannheim said its index of investor and analyst expectations, which aims to predict economic developments six months in advance, increased to 36.4 from 36.3 in April. Economists forecast a gain to 39,5, according to the median estimates

Finance chiefs from the 27 members of the European Union meet today in Brussels to discuss plans to create a banking union for the region. The 17 euro-area finance chiefs also met yesterday.

A gauge of commodity producers was the worst performer of the 19 industry groups in the Stoxx 600 as JPMorgan lowered its forecast on China's 2013 gross domestic product to 7.6 percent from 7.8 percent, citing weak domestic demand.

Anglo American slipped 2.5 percent to 1,537 pence and Rio Tinto, the world's second-biggest mining company, fell 2.2 percent to 2,935 pence.

Aurubis AG retreated 5.5 percent to 46.59 euros as the world's second-largest producer of refined copper posted second-quarter earnings before interest and taxes of 11 million euros, missing the average analyst projection of 15.9 million euros.

Commerzbank declined 2.5 percent to 9.69 euros, the lowest price since at least 1992. Germany's second-biggest bank said it is offering the right to buy 20 shares for every 21 held by investors at 4.5 euros apiece. That equates to a 55 percent discount to yesterday's share price, or 38 percent below the 7.28 euros a share theoretical price the stock would have following the rights issue. The stock will be offered from tomorrow until May 28, the bank said on its website.

GDF Suez SA, Europe's largest utility by market value, declined 2.8 percent to 16.26 euros. Groupe Bruxelles Lambert SA sold 65 million shares in GDF for 16.26 euros, less than yesterday's closing price.

FTSE 100 6,623.59 -8.17 -0.12%

CAC 40 3,932.58 -12.62 -0.32%

DAX 8,268 -11.29 -0.14%

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

Asian stocks rose, with the regional benchmark index heading for a second day of gains, as increases in Japanese utilities countered a slide in Chinese stocks.

Nikkei 225 14,758.42 -23.79 -0.16%

S&P/ASX 200 5,221 +10.66 +0.20%

Shanghai Composite 2,217.01 -24.91 -1.11%

Tokyo Electric Power Co. jumped 18 percent after the Yomiuri newspaper quoted Prime Minister Shinzo Abe as saying the Japan's No. 1 utility shouldn't take the full blame for the Fukushima nuclear crisis.

Kajima Corp. jumped 8.8 percent after the Japanese construction company forecast operating profit will increase 68 percent in the current year.

Industrial & Commercial Bank of China Ltd., the nation's biggest lender, slipped 1.4 percent after JPMorgan Chase & Co. cut its growth outlook for the world's biggest economy and as concern grew the government will introduce more property curbs.

---

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.

Change % Change Last

GOLD 1,430.50 -6.10 -0.42%

OIL 95.04 -1.00 -1.04%

Change % Change Last

Nikkei 225 14,782.21 +174.67 +1.20%

S&P/ASX 200 5,210.3 +4.21 +0.08%

Shanghai Composite 2,241.92 -4.91 -0.22%

FTSE 100 6,631.76 +6.78 +0.10%

CAC 40 3,945.2 -8.63 -0.22%

DAX 8,279.29 +0.70 +0.01%

DJIA 15,091.70 -26.81 -0.18%

S&P 500 1,633.78 0.08 0.00%

NASDAQ 3,438.79 2.21 0.06%

(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%