The yen weakened against the U.S. dollar against the two-day meeting starting today, the Federal Reserve, which may give markets further information about when the U.S. central bank will reduce the bond-buying program. It is expected that the central bank may announce the collapse of quantitative easing. May 22, Fed Chairman Ben Bernanke said he was willing to reduce the current incentive program, if employment rates in the country will begin to show sustained improvement. Additional pressure on the yen has had a release of weak data on industrial output in Japan. April data showed an increase of 0.9%, while analysts had expected a rise to 1.7%.

It is worth noting that Japan's currency has lost some of its gains this month after the central bank released data on the current account of balance of payments, which rose to a new high against the backdrop of unprecedented monetary stimulus.

The euro exchange rate reached a four-month high against the dollar, after data from the Center for European Economic Research (ZEW), showed that the indicator of investor confidence in Germany rose in June, more than expected, after it remained at the same level in the previous month.

According to the report, the index of economic expectations in Germany in June rose 38.5 versus 36.4 in May. Economists had expected the index to rise to 38.2. At the same time, the index of current conditions in Germany June 8.6 vs 8.9 in May. The market had expected the index to rise to 9.5.

ZEW President Clemens Fuest said that "financial experts stick to their estimates: the German economy is likely to gain momentum in the second half of 2013." "However, the results of this survey show that the economy will improve slowly."

In addition, the report showed that euro zone economic sentiment index rose three points to 30.6 in June. The current conditions index for the currency bloc, however, lost 2.7 points to -79.5.

The pound rebounded from lows against the dollar, but still traded lower. It is worth noting that such dynamics triggered data on inflation and producer prices.

As it became known, the rate of inflation (CPI) rose to 2.7 percent in May from 2.4 percent in April. Economists had expected the CPI to rise to 2.6 percent. On a monthly basis, consumer prices rose by 0.2 percent, the same pace as in the previous month. Economists expected the index to rise by 0.1 percent. The retail price index (RPI) rose by 3.1 percent year on year, as expected. Separately Bureau of Statistics reported that the Producer Price Index (Output PPI) year on year in May rose by 1.2 percent in May, compared with 0.9 percent in April. This, however, was lower than the 1.4 percent that economists expected. On a monthly index measuring sales prices remained unchanged in line with expectations. The base index of producer prices, which exclude volatile prices for food, beverages, tobacco and petroleum products rose 0.8 percent year on year, compared with the expected 0.9 percent growth. In the year to May, the production costs faced by producers (Input PPI), rose 2.2 percent after a 0.1 percent drop in April. Expected to increase to 2.5 percent. On a monthly basis, the Producer Price Index fell 0.3 percent, while expectations were at the same level.

European stocks were little changed as U.S. housing starts for May missed estimates amid concern the Federal Reserve will signal stimulus cuts at its policy meeting starting today.

The Stoxx Europe 600 Index lost less than 0.1 percent to 293.02 at the close of trading. The gauge has declined 5.7 percent since Federal Reserve Chairman Ben S. Bernanke said May 22 the central bank could scale back stimulus measures if the U.S. economy improves sustainably.

U.S. housing starts climbed 6.8 percent, less than forecast, to a 914,000 annualized rate in May after a revised 856,000 pace in April, Commerce Department figures showed in Washington. The median estimate of economists called for a 950,000 rate.

The Federal Open Market Committee begins a two-day policy meeting today, with Bernanke scheduled to address the press tomorrow. At the press conference, Bernanke may signal the central bank is close to tapering its quantitative easing, the Financial Times wrote. The newspaper didn't cite anyone.

A report showed German investor confidence increased this month. The ZEW Center for European Economic Research in Mannheim, Germany, said its index of investor and analyst expectations rose to 38.5 this month from 36.4 in May. Economists on average had forecast 38.1. Zero is the dividing line between optimism and pessimism.

National benchmark indexes climbed in 12 of the 18 western European markets.

FTSE 100 6,374.21 +43.72 +0.69% CAC 40 3,860.55 -3.11 -0.08% DAX 8,229.51 +13.78 +0.17%

Kabel Deutschland advanced 3.7 percent to 85.51 euros, its highest price since it sold shares to the public in March 2010. Germany's largest cable TV operator said it received a proposal from Liberty, the cable company controlled by John Malone. The offer comes after Vodafone Group Plc last week said it approached the German company about a takeover.

Liberty offered Kabel Deutschland about 85 euros a share, the Financial Times reported. Vodafone's informal offer valued the German cable company at between 81 and 82 euros a share, people familiar with the matter said June 12.

Aveva jumped 5.4 percent to 2,373 pence as Citigroup raised its recommendation on the shares to buy from neutral. The U.K. maker of engineering-software products is well positioned for "robust growth" as it starts selling its E3D software for three-dimensional design, Citigroup said in a note.

Danske Bank fell 6.1 percent to 104.90 kroner, its biggest retreat since October, after the Financial Supervisory Authority asked it to adjust its internal-rating model in a step that will require the lender to add about 100 billion kroner ($18 billion) to its risk-weighted assets "over time." Denmark's biggest lender had underestimated its risky assets, the regular said yesterday.

Royal Imtech tumbled 12 percent to 7.32 euros, the lowest price since November 2004. The Dutch infrastructure provider reported a first-quarter net loss of 59.6 million euros ($80 million), citing the costs of a probe into fraudulent actions in Poland and Germany as the primary cause.

Aggreko Plc, the largest supplier of mobile power supplies, declined 2.2 percent to 1,752 pence after maintaining its full-year outlook and saying trading in power projects remains "subdued."

Oil prices rose slightly today ahead of tomorrow's meeting of the Federal Open Market Committee, which is expected to be able to shed light on the future monetary policy of the United States. It is worth noting that at the moment there is no clarity as to how to proceed with the policy of quantitative easing. Recall that the program in the amount of $ 85 billion per month so far supported the U.S. economy, which is the world's largest consumer of oil. Experts point out that stronger economic growth usually leads to a greater use of energy companies and an increase in demand for oil from motorists.

Oil traders pay close attention to the actions of the central bank during the period of recovery of the U.S. economy. But most of the attention was drawn to the speech of Fed Chairman Ben Bernanke in May, during which he said that the central bank can reduce the size of the program by buying bonds in the next few meetings against the gradually improving U.S. economy.

We add that the rise in prices also contribute to concerns about global supply disruptions, after the United States decided to play a more active role in the Syrian conflict. Recall that last week, the U.S. administration decided to arm the Syrian rebels. Meanwhile, Russia continues to support Syrian President Bashar al-Assad. Although Syria is not a major producer of oil, and military expansion in the country has the potential to spill over into neighboring countries that disrupt oil supplies in the Middle East.

The cost of the July futures on U.S. light crude oil WTI (Light Sweet Crude Oil) rose to 97.95 dollars a barrel on the New York Mercantile Exchange.

July futures price for North Sea Brent crude oil mixture rose 2 cents to $ 106.02 a barrel on the London exchange ICE Futures Europe.

Gold prices declined significantly, which was associated with the expectations of tomorrow's meeting of the Federal Reserve System, which is expected, the market will have more clarity on the prospects for monetary policy. Add that trades in the U.S. currency and the stock markets are in a narrow range, as uncertainty over the future of U.S. monetary stimulus program investors is the focus of that, just, and helps push gold prices downward.

It is worth noting that the Fed meeting, which is scheduled for this week, has caused much speculation as to what the Fed can reduce the size of its asset-purchase program, which now amounts to $ 85 billion a month.

Recall that the program, known as quantitative easing, aimed at stimulating economic growth in the United States, has helped raise the price of gold to record levels in recent years, keeping the pressure on long-term interest rates and stoking fears about inflation. Fears that the amount of the program can be reduced to help lower prices by 18% this year. Many experts point out that the decline was much larger than many would expect.

We add that the data presented today showed that physical demand in India and China, which are the largest consumers of gold, down from peak levels after the sharp sell-off in April. Any signs of a significant slowdown in demand in the Chinese market would be a big blow to the value of gold, as investors expect that China will be able to compensate for the weaknesses of buying from India. Note that the demand in India has declined markedly after the government increased the duty on imports in order to reduce its current account deficit.

The cost of the August gold futures on COMEX today dropped to 1361.60 dollars an ounce.

EUR/USD $1.3225, $1.3230, $1.3280, $1.3300, $1.3315, $1.3350, $1.3450

USD/JPY Y94.50, Y95.00, Y95.35, Y96.00, Y97.50

AUD/USD $0.9450, $0.9570, $0.9600, $0.9615, $0.9675

USD/CHF Chf0.9200

EUR/CHF Chf1.2310

GBP/USD $1.5700, $1.5730, $1.5735

AUD/JPY Y90.90

USD/CAD C$1.0240

U.S. stock futures were little changed as investors awaited the start of a Federal Reserve policy meeting.

Global Stocks:

Nikkei 13,007.28 -25.84 -0.20%

Hang Seng 21,225.88 -0.02 0.00%

Shanghai Composite 2,159.29 +3.08 +0.14%

FTSE 6,387.84 +57.35 +0.91%

CAC 3,861.99 -1.67 -0.04%

DAX 8,226.96 +11.23 +0.14%

Crude oil $97.99 +0.23%

Gold $1374.80 -0.60%

After reporting decreases in consumer prices in each of the two previous months, the Labor Department released a report on Tuesday showing a modest increase in prices in the month of May.

The Labor Department said its consumer price index inched up by 0.1 percent in May after falling by 0.4 percent in April and dipping 0.2 percent in March. Economists had been expecting the index to edge up by 0.2 percent.

The core consumer price index, which excludes food and energy costs, rose by 0.2 percent in May after rising by 0.1 percent in each of the two previous months. The modest increase matched expectations.

New residential construction in the U.S. showed a significant rebound in the month of May, according to a report released by the Commerce Department on Tuesday, although housing starts still came in well below economist estimates.

The report said housing starts climbed 6.8 percent to a seasonally adjusted annual rate of 914,000 in May from the revised April estimate of 856,000. The increase in housing starts came following a 14.8 percent drop in the previous month.

However, economists had been expecting housing starts to surge up to an annual rate of 955,000 compared to the 853,000 originally reported for April.

The Commerce Department also said building permits, an indicator of future housing demand, fell 3.1 percent to an annual rate of 974,000 in May from the revised April rate of 1.005 million. The drop in permits came roughly in line with expectations.

European stocks advanced for a third day as investors awaited U.S. housing data to gauge whether the Federal Reserve will signal stimulus cuts at its policy meeting starting today.

The Federal Open Market Committee begins a two-day policy meeting today, with Bernanke holding a press conference tomorrow. In that conference, Bernanke may signal the central bank is close to tapering its quantitative easing, the Financial Times wrote. The newspaper didn't cite anyone.

A report showed German investor confidence increased this month. The ZEW Center for European Economic Research in Mannheim, Germany, said its index of investor and analyst expectations rose to 38.5 this month from 36.4 in May. Economists on average had forecast 38.1. Zero is the dividing line between optimism and pessimism.

Kabel Deutschland advanced 3.7 percent to 85.53 euros, its highest price since it sold shares to the public in March 2010. Germany's largest cable TV operator said it received a proposal from Liberty, the cable company controlled by John Malone. The offer comes after Vodafone Group Plc last week said it approached the German company about a takeover.

Liberty offered Kabel Deutschland about 85 euros a share, the Financial Times reported. Vodafone's informal offer valued the German cable company at between 81 and 82 euros a share, people familiar with the matter said June 12.

Aveva jumped 5.5 percent to 2,376 pence as Citigroup raised its recommendation on the shares to buy from neutral. The U.K. maker of engineering-software products is well positioned for "robust growth" as it starts selling its E3D software for three-dimensional design, Citigroup said in a note.

Danske Bank fell 5.3 percent to 105.80 kroner after the Financial Supervisory Authority asked it to adjust its internal-rating model in a step that will require the lender to add about 100 billion kroner ($18 billion) to its risk-weighted assets "over time." Denmark's biggest lender had underestimated its risky assets, the regular said yesterday.

FTSE 100 6,373.61 +43.12 +0.68%

CAC 40 3,862.03 -1.63 -0.04%

DAX 8,216.67 +0.94 +0.01%

Germany's investor confidence rose more-than-expected in June, after remaining largely unchanged in the previous month, results of a survey by the Mannheim-based Centre for European Economic Research/ZEW showed on Tuesday.

The ZEW Indicator of Economic Sentiment climbed to 38.5 from 36.4 in May. Economists were looking for a score of 38.1. The latest reading is the highest since March.

Meanwhile, the current conditions measure dropped to 8.6 from 8.9. The index was expected to rise to 9.5.

"The financial experts stick to their assessment: the German economy is likely to pick up speed in the second half of 2013," ZEW President Clemens Fuest said.

"However, the results of the current survey indicate that the economy will improve rather slowly."

Nearly half of the survey respondents expect no significant economic impulses in the next six months, Fuest added.

The economic sentiment index for Eurozone climbed three points to 30.6 in June. The current conditions index for the currency bloc, however, shed 2.7 points to reach -79.5.

Consumer price inflation in the UK accelerated more than expected in May, the latest figures from the Office for National Statistics showed Tuesday.

The rate of inflation rose to 2.7 percent in May from 2.4 percent in April. Economists expected the rate to rise to 2.6 percent.

The largest upward contributions to the change in the inflation rate came from transport, notably air transport and motor fuels, as well as clothing, according to the statistical office.

On a monthly basis, CPI rose 0.2 percent, at the same pace as in the previous month. Economists had forecast the index to rise 0.1 percent.

An experimental measure of consumer price inflation including owner occupiers' housing costs, grew 2.5 percent in the year to May, faster than 2.2 percent increase in April. The retail price index rose 3.1 percent year-on-year as expected.

Separately, the statistical office reported that the output price inflation at British manufacturers rose to 1.2 percent in May from 0.9 percent in April. This, however, was below 1.4 percent expected by economists.

Between April and May, factory gate prices remained unchanged, in line with forecasts. The core factory gate prices, that excludes the more volatile food, beverages, tobacco and petroleum products, rose 0.8 percent year-on-year compared with an expected 0.9 percent rise.

In the year to May, input costs faced by manufacturers rose 2.2 percent. This compared with forecast of 2.5 percent increase and follows a 0.1 percent fall in April. On a monthly basis, input prices fell 0.3 percent while expectations were for a flat outcome.

EUR/USD $1.3225, $1.3230, $1.3280, $1.3300, $1.3315, $1.3350, $1.3450

USD/JPY Y95.00, Y95.35, Y96.00, Y97.50, Y98.00

AUD/USD $0.9570, $0.9600, $0.9615, $0.9675

USD/CHF Chf0.9200

EUR/CHF Chf1.2310

GBP/USD $1.5700, $1.5730, $1.5735

AUD/JPY Y90.90

Asian stocks swung between gains and losses as the Federal Reserve prepares for a two-day policy meeting. Chinese developers fell on concern gains in home prices will limit scope for monetary easing.

Nikkei 225 13,007.28 -25.84 -0.20%

Hang Seng 21,169.22 -56.68 -0.27%

S&P/ASX 200 4,814.4 -11.48 -0.24%

Shanghai Compositе 2,159.29 +3.08 +0.14%

China Overseas Land & Investment Ltd., the biggest mainland developer traded in Hong Kong, slipped 1.9 percent.

STX Pan Ocean Co., South Korea's No. 1 commodities-shipping company, slumped 15 percent after a court accepted its application to seek protection.

Sony Corp. climbed 4.4 percent in Tokyo after Third Point LLC, a hedge fund controlled by billionaire Daniel Loeb, increased its stake in the electronics maker.

01:30 Australia RBA Meeting's Minutes June

04:30 Japan Industrial Production (MoM) (Finally) April +1.7% +1.7% +0.9%

04:30 Japan Industrial Production (YoY) (Finally) April -2.3% -2.3% -3.4%

The yen declined for a second day against the dollar before the Federal Reserve starts a two-day meeting today amid speculation about when the central bank will slow its quantitative easing program of bond purchases. Fed Chairman Ben S. Bernanke said on May 22 the central bank could reduce its monthly purchases of $45 billion of Treasuries and $40 billion of mortgage-backed securities if the employment outlook shows sustained improvement.

The yen weakened against most of its major peers after a Bank of Japan report showed its current-account balance will rise to a record amid unprecedented monetary stimulus. The central bank estimated today that its current-account balance, a measure of financial firms' deposits at the central bank, will rise to a record 75.5 trillion yen.

Demand for the greenback was supported before U.S. reports today that may show inflation is picking up and the housing market is improving. The U.S. consumer-price index probably rose 0.2 percent in May from a month earlier, economists forecast in a Bloomberg News survey before the release of Labor Department figures today. The gauge dropped 0.4 percent in April, the most since December 2008. A separate report from the Commerce Department is likely to show that housing starts climbed 11.4 percent last month from April to a 950,000 annualized rate.

The euro was near an almost four-month high before German data forecast to show investor confidence advanced. The ZEW Center for European Economic Research in Mannheim is scheduled to release the latest reading of its index of investor and analyst expectations in Germany. The gauge, which aims to predict economic developments six months in advance, probably rose to 38.1 in June, the highest in three months, from 36.4 in May, a Bloomberg poll of economists shows.

EUR / USD: during the Asian session the pair fell fell to $ 1.3345

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

USD / JPY: during the Asian session the pair rose to Y94.95

There are data releases on both sides of the Atlantic Tuesday and ECB President Mario Draghi speaks. However, the main focus for traders is still on the Fed, with the latest policy announcement and press briefing expected on Wednesday. The European calendar gets underway at 0600GFMT, with the release of the May ACEA new car registrations for the euro area. At the same time, ECB President Mario Draghi IS SET to speak at A Bank of Israel Conference in Jerusalem. The main German release comes at 0900GMT, with the release of the June ZEW survey. The market is looking for a Current situation reading of 9.5, up from 8.9 in May. The economic sentiment indicator is seen rising to 38.1. The latest UK inflation data is expected at 0830GMT, with PPI, CPI and RPI all set for release. Data are expected to show that consumer price inflation drifted higher in May after having fallen sharply in April. Lower petrol prices helped bring down the CPI rate in April but they moved higher in May as oil prices rose off their April lows. Producer input prices are likely to have fallen again, reflecting the modest rise in sterling plus falls in the cost of a range of non-oil commodities. Also expected at the same time is the latest April House Price Index. The G8 leaders summit continues in Northern Ireland, ending later today, with expectations for today's talks to focus on tax avoidance issues.

Change % Change Last

GOLD 1,381.80 -5.50 -0.40%

OIL (WTI) 97.82 -0.03 -0.03%

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 -1,78 -0,08 2,160.26%

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%

Dow +110.51 15,180.69 +0.73%

Nasdaq +28.57 3,452.13 +0.83%

S&P +12.4 1,639.13 +0.76%

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

EUR/USD $1,3362 +0,11%

GBP/USD $1,5718 +0,08%

USD/CHF Chf0,9226 +0,21%

USD/JPY Y94,68 +0,58%

EUR/JPY Y125,52 -0,03%

GBP/JPY Y148,78 +0,69%

AUD/USD $0,9548 -0,22%

NZD/USD $0,8001 -0,51%

USD/CAD C$1,0186 +0,17%

01:30 Australia RBA Meeting's Minutes June

04:30 Japan Industrial Production (MoM) (Finally) April +1.7% +1.7%

04:30 Japan Industrial Production (YoY) (Finally) April -2.3% -2.3%

06:00 Eurozone ECB President Mario Draghi Speaks

08:30 United Kingdom Retail Price Index, m/m May +0.3% +0.2%

08:30 United Kingdom Retail prices, Y/Y May +2.9% +3.1%

08:30 United Kingdom RPI-X, Y/Y May +2.9% +3.1%

08:30 United Kingdom Producer Price Index - Input (MoM) May -2.3% +0.1%

08:30 United Kingdom Producer Price Index - Input (YoY) May -0.1% +2.5%

08:30 United Kingdom Producer Price Index - Output (MoM) May -0.1% 0.0%

08:30 United Kingdom Producer Price Index - Output (YoY) May +1.1% +1.4%

08:30 United Kingdom HICP, m/m May +0.2% +0.1%

08:30 United Kingdom HICP, Y/Y March +2.4% +2.6%

08:30 United Kingdom HICP ex EFAT, Y/Y May +2.0% +2.1%

09:00 Eurozone ZEW Economic Sentiment June 27.6 29.4

09:00 United Kingdom Inflation Report Hearings Quarter I

09:00 Germany ZEW Survey - Economic Sentiment June 36.4 38.2

12:30 U.S. Building Permits, mln May 1.017 0.977

12:30 U.S. Housing Starts, mln May 0.853 0.950

12:30 U.S. CPI, m/m May -0.4% +0.1%

12:30 U.S. CPI, Y/Y May +1.1% +1.4%

12:30 U.S. CPI excluding food and energy, m/m May +0.1% +0.2%

12:30 U.S. CPI excluding food and energy, Y/Y May +1.7% +1.7%

16:00 G8 G8 Meetings

20:30 U.S. API Crude Oil Inventories June +9.0

22:45 New Zealand Current Account Quarter I -3.26 -0.64

23:50 Japan Adjusted Merchandise Trade Balance, bln May -764.4 -892.8