Euro holds tight against the yen and the dollar due to the lack of important economic data that could affect the course of trading. Add that could have a small impact report, which showed that the trade surplus currency bloc of 17 countries in April was below the record high. Trade data showed that in April, the euro zone recorded a positive balance of foreign trade in goods in the amount of 14.9 billion euros (19.9 billion dollars), as the region's exports exceeded imports. Although this is a surplus above the level of 3.3 billion euros, recorded in April 2012, it is well below the record high of 22.5 billion euros achieved in March. Total exports in April amounted to 161.3 billion euros against 165.6 billion euros in March. Imports in April rose to 146.4 billion euros against 143.0 billion in March. These data indicate that domestic demand is likely increased in the first month of the 2nd quarter, while foreign demand declined.

Value of the dollar sharply higher against the pound, which was a reaction to the U.S. data, which were released by the National Association of Home Builders.

According to the report NAHB, Housing Market Index in June rose to 52, adding 8 points compared to May. It should be noted that this is his biggest leap since the summer of 2002. For the first time since April 2006, the index reached a value greater than 50. Recall that the index value above 50 indicates that the number of companies that positively assessing the conditions for sales, exceeds the number of companies that give a negative assessment. The index has far surpassed the expectations of economists, who had forecast that the index would be 45 in June.

It should also be noted that housing is an important driving force of the economy, making significant contributions to the overall growth every quarter since mid-2011. Moreover, the industry provides a steady source of employment. Recall that new home sales remained near five-year high in the first four months of the year. This is a strong indication of the fact that among Americans is growing optimism about the economy and more and more they are willing to make large investments.

However, the industry is faced with obstacles. Interest rates are rising, making mortgages more expensive. In addition, there are concerns that the Federal Reserve will begin to measures to reduce the stimulus this year.

We add that even with the June increase, the index state of the housing market to be well below historical highs.

The Australian dollar declined significantly against the U.S. dollar, having lost in the course of trade of more than one figure. It should be noted that market participants focused on the publication of reports of the Reserve Bank of Australia, which will be published tomorrow and the meeting of the open market operations at the end of the week, which will be the most important event since the Australian calendar seems pretty loose for the current week.

European stocks rose, rebounding from their longest streak of weekly losses in 14 months, as investors awaited this week's Federal Reserve meeting for signs on the pace of stimulus reduction.

The Stoxx Europe 600 Index rose 0.8 percent to 293.31 at 4:30 p.m. in London, for the first back-to-back gains this month. The gauge fell 1.5 percent last week and has lost 5.6 percent since May 22 when Federal Reserve Chairman Ben S. Bernanke said the central bank could pare quantitative easing if the U.S. economy improves sustainably.

The Federal Open Market Committee will hold its policy meeting tomorrow and the day after, with Bernanke explaining his stance after the decision on June 19. At stake is the Fed's monthly purchase of $85 billion of Treasuries and mortgage securities and the target rate for overnight lending between banks, which has been kept at almost zero since December 2008.

A report showed that manufacturing in the New York, northern New Jersey and southern Connecticut region unexpectedly increased this month. The Fed Bank of New York's general economic index rose to 7.84 in June, from minus 1.4 in May. Economists had predicted a reading of zero, the dividing line between expansion and contraction.

National benchmark indexes climbed in 14 of the 17 western European markets trading today.

FTSE 100 6,330.49 +22.23 +0.35% CAC 40 3,863.66 +58.50 +1.54% DAX 8,215.73 +87.77 +1.08%

Telefonica SA advanced 2.3 percent to 10.26 euros as El Mundo reported that Spain blocked AT&T Inc.'s takeover bid for the company because Telefonica is "strategic" to Spain's economy. Spokeswoman Marisa Navas said the company didn't receive any formal or informal approach from AT&T.

Belgacom SA rose 1.9 percent to 17.54 euros. Exane BNP Paribas raised its rating of Belgium's largest telephone company to neutral from underperform. Belgacom's Scarlet brand last week introduced an 8 euro-per-month mobile-service plan.

ABB rose 2.6 percent to 20.71 francs after the company named as CEO Ulrich Spiesshofer, who oversaw the company's $1 billion deal to buy California-based Power-One Inc. He will take over after Joe Hogan steps down on Sept. 15.

Saipem plunged 29 percent to 14.24 euros, for the worst performance on the Stoxx 600. Italy's largest oil-and-gas engineering company cut its forecast for earnings before interest and tax this year by 650 million euros to 750 million euros. The company now expects a net loss of 300 million euros to 350 million euros.

Imagination Technologies Group Plc fell 3.5 percent to 304.4 pence as Barclays Plc cut the U.K. designer of chip technology for phones and tablets to equal weight, the equivalent of hold, from overweight. Barclays cited pressure on smartphone prices.

Oil prices rose slightly today, rising above $ 106 a barrel, as the confrontation between the U.S. and Syria have increased significantly, which may help reduce oil production in the Middle East region. But concerns about the stocks and uncertainty about global demand partially offset these concerns.

Add that many investors are waiting to see the new president of Iran can still resolve the dispute with the U.S. over Tehran's nuclear ambitions, which contributed to the introduction of Western sanctions, and reduced oil exports.

Experts point out that the movement of the oil market is currently based mainly on the geopolitical factors. They also added that the U.S. decision to supply arms to rebels in Syria threatens to completely transform the civil war in Syria into a war between the world powers, given the fact that Russia is providing military support to the Assad regime. Add that to the meeting, G8, is expected to Syria will be a key topic of conversation between U.S. President Barack Obama and Russian President Vladimir Putin, as both countries seek to find common ground to ensure the termination of the two-year civil war.

It is also worth noting that many investors are cautious on the eve of the meeting of the Federal Reserve System, which will begin tomorrow. Analysts believe that Ben Bernanke may give more clarity about how and when the central bank will reduce the amount of their incentive programs.

The cost of the July futures on U.S. light crude oil WTI (Light Sweet Crude Oil) rose to 97.97 dollars a barrel on the New York Mercantile Exchange.

July futures price for North Sea Brent crude oil mixture rose 21 cents to $ 106.05 a barrel on the London exchange ICE Futures Europe.

Gold prices fell today, which was due to the strengthening of the dollar, and investors' expectations of the Fed meeting, which is scheduled for this week. Add that many market participants are looking for clues regarding minimizing the Fed's economic stimulus program, known as quantitative easing (QE). It should be noted that any weakening of the bond-buying program, which raises the prospect of a future tightening of course, is seen as a negative factor for gold.

Recall that the market sentiment changed markedly, after Federal Reserve Chairman Ben Bernanke said last month that the Fed may roll their stimulus measures, while other Fed officials have since presented conflicting signals. Most economists expect the Fed can reduce the size of the purchase of bonds by the end of the year, and a smaller part of the decision is expected in September.

We add that a further decline in gold prices today prevented some purchases in China, which is the second-largest gold consumer after India. However, demand in Asia is far from the peak levels seen after the mid-April during sales of gold. In addition, we note that Indian gold purchases fell, after earlier this month the government introduced import duty, trying to narrow the current account deficit by reducing imports of gold.

In addition, the data presented today showed that gold mining in Australia, which is number two after China, fell by 5% in the first quarter, reaching a level of 63.5 tons.

The cost of the August gold futures on COMEX today dropped to 1383.00 dollars per ounce.

EUR/USD $1.3200, $1.3225, $1.3230, $1.3300, $1.3350

USD/JPY Y93.50, Y94.00, Y94.50, Y95.00, Y95.50, Y95.95, Y96.00, Y96.25, Y96.60, Y96.65, Y96.75, Y97.00

AUD/USD $0.9600, $0.9635, $0.9660

USD/CHF Chf0.9275

USD/CAD C$1.0150

GBP/USD $1.5465, $1.5625, $1.5700

U.S. stock futures advanced as investors awaited this week's Federal Reserve monetary policy meeting.

Global Stocks:

Nikkei 13,033.12 +346.60 +2.73%

Hang Seng 21,225.9 +256.76 +1.22%

Shanghai Composite 2,156.21 -5.83 -0.27%

FTSE 6,346.05 +37.79 +0.60%

CAC 3,863.42 +58.26 +1.53%

DAX 8,234.15 +106.19 +1.31%

Crude oil $98.08 +0.23%

Gold $1383.60 -0.29%

Upgrades:

Downgrades:

Chevron (CVX) downgraded from Buy to Hold at Jefferies

Other:

EUR/USD

Offers $1.3430/35, $1.3420, $1.3400, $1.3370/80, $1.3355/60

Bids $1.3310/00, $1.3250, $1.3220

GBP/USD

Offers $1.5850, $1.5800, $1.5760, $1.5750

Bids $1.5670, $1.5650, $1.5640, $1.5600, $1.5585/80

AUD/USD

Offers $0.9750, $0.9720, $0.9700, $0.9675/80, $0.9650/60, $0.9640/45

Bids $0.9595/90, $0.9580, $0.9560/50, $0.9540/35, $0.9500, $0.9480/75

EUR/JPY

Offers Y128.00, Y127.50, Y127.20/30, Y127.00

Bids Y126.10/00, Y125.80/70, Y125.60/50, Y125.30, Y125.00, Y124.50

EUR/GBP

Offers stg0.8595/600, stg0.8575/80, stg0.8560/65, stg0.8550, stg0.8530/40, stg0.8520

Bids stg0.8475/70, stg0.8465/60, stg0.8445/40, stg0.8420, stg0.8400

USD/JPY

Offers Y96.50, Y96.20, Y95.95/00, Y95.50, Y95.30/40

Bids Y94.60/50, Y94.20, Y94.10/00, Y93.80/75, Y93.50

European stocks advanced, after the Stoxx Europe 600 Index posted its longest streak of weekly losses in 14 months, as investors awaited signals from the Federal Reserve on stimulus measures. U.S. index futures and Asian shares also rose.

The Fed will hold its two-day policy meeting this week, with Bernanke explaining his stance after the central bank's decision on June 19. The Fed is buying $85 billion of Treasuries and mortgage securities a month to spur the economy, and has kept the target for overnight lending between banks at almost zero since December 2008.

Group of Eight leaders gather for a two-day summit in Northern Ireland today with trade near the top of the agenda. European leaders seeking a path to economic growth while curbing their debt will focus on the benefits of a trade agreement with the U.S. after the European Union authorized the start of talks.

Telefonica SA advanced 2.9 percent to 10.33 euros as El Mundo reported that Spain blocked AT&T Inc.'s takeover bid for the company because the Telefonica is "strategic" to Spain's economy. Spokeswoman Marisa Navas said the company didn't receive any formal or informal bid, indication or approach by AT&T.

ABB rose 1.4 percent to 20.47 Swiss francs after the company named Ulrich Spiesshofer, who has earlier overhauled the company's robotics division, as CEO. He will take over after Joe Hogan steps down on Sept. 15.

Imagination Technologies Group Plc fell 2.2 percent to 308.4 pence as Barclays Plc cut the U.K. designer of chip technology for phones and tablets to equal weight, the equivalent of hold, from overweight.

FTSE 100 6,358.99 +50.73 +0.80%

CAC 40 3,872.29 +67.13 +1.76%

DAX 8,240.46 +112.50 +1.38%

Eurozone's trade in goods with the rest of the world resulted in a surplus in April, which was lower than a month earlier, data from Eurostat revealed Monday.

The trade surplus fell to EUR 14.9 billion in April from EUR 22.5 billion in March. A year earlier, the surplus amounted to EUR 3.3 billion.

Exports grew 9 percent year-on-year in April, following a flat result in March. Imports rose 1 percent annually, recovering marginally from 10 percent slump in the previous month.

Between April and March, the seasonally adjusted exports fell 0.8 percent while imports rose 0.5 percent.

Extra-EU27 trade balance was a EUR 9.2 billion surplus in April, compared with a surplus of EUR 15.9 billion in March and a deficit of EUR 13.4 billion in April 2012. Exports by EU 27 fell 0.2 percent month-on-month while imports remained stable.

EUR/USD $1.3000, $1.3200, $1.3225, $1.3230, $1.3350

USD/JPY Y93.50, Y94.00, Y94.50, Y95.00, Y95.50, Y95.95, Y96.00, Y96.25, Y96.60, Y96.65, Y96.75, Y97.00

AUD/USD $0.9600, $0.9635, $0.9660

USD/CHF Chf0.9275

USD/CAD C$1.0150

Asian stocks rose, with the regional benchmark index heading for its biggest two-day advance since September, as investors await this week's Federal Reserve meeting.

Nikkei 225 13,033.12 +346.60 +2.73%

Hang Seng 21,256.75 +287.61 +1.37%

S&P/ASX 200 4,825.9 +34.14 +0.71%

Shanghai Composite 2,160.26 -1.78 -0.08%

Japan's Topix Index jumped after falling the past four weeks.

GCL-Poly Energy Holdings Ltd., the largest maker of materials used in solar panels, increased 6.6 percent in Hong Kong on optimism China will boost domestic demand for solar-generated electricity.

Chiyoda Corp., a builder of industrial facilities, gained 8 percent in Tokyo after Bank of America's Merrill Lynch raised its rating to buy.

Nomura Real Estate Office Fund Inc., partly-owned by Japan's No. 1 brokerage, slumped 12 percent after announcing a share sale.

01:30 Australia New Motor Vehicle Sales (MoM) May -1.6% 0.0%

01:30 Australia New Motor Vehicle Sales (YoY) May +3.3% +0.2%

The euro climbed against the yen before European data on the region's trade balance due today as inflows in the region support the best-performing currency among majors this year. The European Union's statistics office in Luxembourg is due to release April trade data for the region today. Euro-area exports exceeded imports by 18.7 billion euros ($25 billion) in March on a seasonally adjusted basis, the biggest trade surplus on record going back to 1999, figures showed last month.

The Dollar Index snapped a five-day decline before the Federal Reserve starts a two-day policy meeting tomorrow as investors weigh when the central bank will curb bond purchases.

Japan's currency weakened versus all its major peers after a technical indicator signaled that its recent gain was too rapid. The yen's 14-day relative-strength index against the dollar climbed to 70 on June 14, a level that some traders see as a signal that an asset's price has risen too far, too fast and is due to reverse course. The RSI for Japan's currency against the euro was 66 at the end of last week.

EUR / USD: during the Asian session the pair fell below $ 1.3330

GBP / USD: during the Asian session the pair fell below $ 1.5700

USD / JPY: during the Asian session the pair rose to Y94.80

There is a full calendar Monday, including the start of the latest G8 gathering in Northern Ireland. However, the main focus of the week is undoubtedly going to be the FOMC meeting and any possible clarification of the Fed's position on tapering bond purchases. The first data release is expected at 0900GMT, with the release of the EMU first quarter labour costs and the April EMU trade balance. At 1000GMT, the Bundesbank will release the June monthly bulletin. At 1315GMT, ECB Executive Board member Joerg Asmussen will participate in a financial market dialogue on ECB policy, in Magdeburg, Germany. There are further European comments expected from 1430GMT, when EU Economics and Monetary Affairs Commissioner Olli Rehn will discuss national policy recommendations at the European Parliament's ECON committee, in Brussels. At 1510GMT, ECB Governing Council member Jens Weidmann is slated to speak on the "Challenges in Monetary Union", in Bremen. Then, at 1630GMT, ECB Governing Council member Ewald Nowotny will appear on a panel at the House of Industry, in Vienna

01:30 Australia New Motor Vehicle Sales (MoM) May -1.6%

01:30 Australia New Motor Vehicle Sales (YoY) May +3.3%

09:00 Eurozone Trade Balance s.a. April 18.7 21.2

12:30 Canada Foreign Securities Purchases April 1.19 4.59

14:00 U.S. NAHB Housing Market Index June 44 45

15:10 Eurozone ECB's Jens Weidmann Speaks

17:00 G8 G8 Meetings