The cost of the euro rose sharply against the dollar, updating the session high, which was associated with the statements by the Fed Bullard and Dudley. According to Bullard, the Federal Reserve should continue to buy bonds, but be ready to change their rates in accordance with the development of the economic situation. Bullard said that it is best if in the future the central bank will "continue to implement the current program of quantitative easing, adjusting the pace of purchases in accordance with the incoming data on the real economic growth of the real and inflation." Bullard said the program of unlimited central bank's purchase of Treasury bonds and mortgage-backed securities.

In his speech, Bullard considered options for further action, which will remain at the central bank when it is no longer able to change interest rates. Of all these "quantitative easing remains the best tool of monetary policy in this situation," he said.

The pound traded down against the dollar, which contributed to the data presented by the British. Note that the report from the National Bureau of Statistics (ONS) showed that the rate of consumer price inflation in the UK slowed in April, and the price pressure from manufacturers has gone down since the fall of oil prices affected the world economy. According to published reports, the annual growth rate of consumer price index (CPI) slowed in April to 2.4% from 2.8% in March. Thus, the annual inflation rate was the lowest since September 2012 and was below economists' forecast, which was 2.6%. Annual core inflation, which excludes volatile energy prices, food and drink, declined in April to 2%, the lowest level since November 2009. According to the ONS, the price of gasoline and diesel fuel declined in March compared with April, reflecting the falling price of a barrel of crude oil by 6.8% over the same period. Decreased and the cost of air travel.

Decline in oil prices also affected the British wholesale prices. UK producer prices rose in April by 1.1% compared to the same period last year. Thus, the annual growth rate of producer prices were the lowest since September 2009. Purchase prices for businesses to source materials, including oil, fell in April by 0.1% compared to the previous month and by 2.3% compared with the same period last year.

The Swiss franc fell against the euro after the International Monetary Fund said that the Swiss National Bank should continue to protect the minimum limit for the pair EUR / CHF at 1.20. Switzerland should not go back to a free floating exchange rate for as long as deflationary pressure and weaken "the economic recovery does not get stronger," the IMF said. Recall that the central bank of Switzerland introduced a threshold level for EUR / CHF pair in September 2011 in order to support exporters who have difficulties due to the strength of the franc. There was talk that the Swiss National Bank may raise the limit for couples to provoke a further weakening of the franc.

European stocks erased losses in the final minutes of trading as Federal Reserve Bank of St. Louis President James Bullard said the U.S. central bank should continue its bond-buying program.

The Stoxx Europe 600 Index rose less than 0.1 percent to 309.99 at the close, having earlier lost as much as 0.7 percent.

Bullard, speaking in Frankfurt as European equity markets closed, said the Fed should continue its bond purchases because markets indicate they are improving financial conditions. The program can be adjusted based on how the economy changes, said Bullard, who votes on the policy-setting Federal Open Market Committee this year. Fed Chairman Ben S. Bernanke will discuss the economic outlook in congressional testimony tomorrow, as the bank also publishes minutes of its last policy meeting.

National benchmark indexes increased in 11 of the 18 western European markets.

FTSE 100 6,803.87 +48.24 +0.71% CAC 40 4,036.18 +13.33 +0.33% DAX 8,472.2 +16.37 +0.19%

Marks & Spencer advanced 6.2 percent to 467.9 pence, the highest since January 2008. The U.K.'s biggest clothing retailer said it will reduce capital spending to 775 million pounds ($1.2 billion) this year and 550 million pounds next year.

Burberry jumped 5.3 percent to 1,541 pence, the highest since April 2012. The company reported full-year profit that beat estimates, boosted by strong demand in China and Hong Kong, and increased the dividend by more than analysts expected.

BHP Billiton Ltd., the world's biggest mining company, advanced 3 percent to 1,982 pence. Rio Tinto Group, the second-largest, climbed 2.6 percent to 2,979 pence. Polymetal International Plc, Russian gold and silver producer, jumped 8.4 percent to 669 pence for the biggest gain since the shares started trading in London in 2011.

Carnival dropped 5.9 percent to 2,267 pence in London after the cruise operator lowered its profit forecast for the second half of 2013, saying price cuts undertaken after a series of mishaps will hurt margins.

Sonova Holding AG, the world's largest maker of hearing aids, retreated 1,1 percent to 103.50 Swiss francs after saying profit growth will slow. Earnings before interest, taxes and acquisition-related amortization and impairments will rise by 9 percent to 13 percent in local currencies this fiscal year, compared with a 15 percent jump in the 12 months ended March, the company said.

The cost of oil futures declined substantially, falling at the same time below $ 104 per barrel, which was due to fears that the U.S. Federal Reserve may curtail its program of quantitative easing. Note that the comments by the Fed and upbeat U.S. data, which were presented last week, increasing the likelihood that the central bank may begin to reduce the purchase of bonds later this year. It is also worth adding that many investors are focusing on the release of minutes of the last Fed meeting and speech by Fed Chairman Ben Bernanke, scheduled on Wednesday.

Analysts expect U.S. crude stocks last week, have not changed, and the Refinery utilization fell. Gasoline stocks are expected on average, declined by 100,000 barrels.

Distillate stocks, which include diesel and heating oil, as the average forecast down 300,000 barrels. Congestion of refining capacity in the U.S. last week, according to the median estimate, down 0.2 percentage points to 87.8%.

Note also that part of the price of oil supports the tense situation in the Middle East, which has raised concerns about the security of supply of the largest producers in the region.

The cost of the June futures on U.S. light crude oil WTI (Light Sweet Crude Oil) fell to 95.80 dollars a barrel on the New York Mercantile Exchange.

June futures price for North Sea Brent crude oil mixture fell $ 0.82 to $ 103.92 a barrel on the London exchange ICE Futures Europe.

Gold prices declined, which was the seventh in the last eight Palen sessions on weak technical signals and speculation that the U.S. Federal Reserve may curb their incentive program. Note that since the beginning of the year gold has suffered greatly from the shift in investments in high-yield sign of improvement in the world economy, especially in the United States. We also recall that yesterday the price of the precious metal fell to $ 1,338.95, the lowest level since April 16.

Economists note that the dynamics of the trade also influenced by the fact that many investors' attention is directed to the speech from Fed Chairman Bernanke in Congress, as well as the publication of the minutes of the Federal Reserve. Recall that on Monday, Federal Reserve Chairman Charles Evans said the central bank may continue to buy bonds during the summer, but in the fall to complete, if the central bank will see a marked improvement in the labor market. Note that the tightening of monetary policy in the U.S. will strengthen the dollar, which in turn will make the precious metal more expensive for holders of other currencies.

In addition, the data presented today showed that inventories in the SPDR Gold Trust continued to decline on Monday, down to the level of 1,031.50 tonnes - their lowest level in more than four years.

The cost of the June gold futures on COMEX today dropped to 1365.60 dollars an ounce.

EUR/USD $1.2800, $1.2845, $1.2850, $1.2900, $1.2975

USD/JPY Y101.50, Y101.65, Y102.00, Y102.25, Y102.50, Y102.60, Y103.00

EUR/JPY Y132.00

GBP/USD $1.5200, $1.5300

USD/CHF Chf0.9625

AUD/USD $0.9775, $0.9800, $0.9805, $0.9900, $1.0000

USD/CAD C$1.0200, C$1.0250

U.S. stock futures were little changed as investors weighed the possibility that the Federal Reserve will scale back its stimulus program.

Global Stocks:

Nikkei 15,381.02 +20.21 +0.13%

Hang Seng 23,366.37 -126.66 -0.54%

Shanghai Composite 2,305.11 +5.13 +0.22%

FTSE 6,765.84 +10.21 +0.15%

CAC 4,014.97 -7.88 -0.20%

DAX 8,435.32 -20.51 -0.24%

Crude oil $96.26 -0.47%

Gold $1372.20 -0.86%

Upgrades:

Downgrades:

Other:

Yahoo! (YHOO) reiterated at Outperform at Oppenheimer, target raised from $27 to $30

EUR/USD

Offers $1.2930/50, $1.2915/25, $1.2905

Bids $1.2820/00, $1.2790-70, $1.2750/35, $1.2710/00

GBP/USD

Offers $1.5350/60, $1.5320/35, $1.5300

Bids $1.5160/50, $1.5130/20, $1.5100/090, $1.5075/70

AUD/USD

Offers $0.9900, $0.9880, $0.9860, $0.9845/50

Bids $0.9750, $0.9735/30, $0.9720, $0.9710, $0.9700, $0.9650

EUR/GBP

Offers stg0.8545/50, stg0.8530/35, stg0.8490-500,

Bids stg0.8430/20, stg0.8400

EUR/JPY

Offers Y133.50, Y133.00, Y132.75/80, Y132.40/50, Y132.30/35

Bids Y131.70/60, Y131.55/50, Y131.30, Y131.10/00, Y130.80

USD/JPY

Offers Y103.60, Y103.50, Y103.30/35, Y103.15/20, Y102.90/00

Bids Y102.10/00, Y101.85/80, Y101.50

European stocks retreated from the highest level in almost five years as Carnival Corp. led travel companies lower after cutting its forecasts.

Carnival dropped 13 percent to 2,101 pence in London, the biggest decline since the Costa Concordia cruise ship ran aground off Italy in January 2012, killing 32 passengers. The cruise operator lowered its profit forecast for the second half of 2013, saying price cuts undertaken after a series of mishaps will hurt margins.

A gauge of auto companies was the worst performer among 19 industry groups in the Stoxx 600. Daimler slid 3 percent to 48.86 euros and Volkswagen AG declined 1.9 percent to 170.60 euros. Renault SA dropped 2.9 percent to 60.33 euros. The index had surged 14 percent this month before today.

Sonova Holding AG, the world's largest maker of hearing aids, retreated 3.5 percent to 100.90 Swiss francs after saying profit growth will slow. Earnings before interest, taxes and acquisition-related amortization and impairments will rise by 9 percent to 13 percent in local currencies this fiscal year, compared with a 15 percent jump in the 12 months ended March, the company said.

Marks & Spencer advanced 4.4 percent to 459.8 pence, the highest since January 2008. The U.K.'s biggest clothing retailer said it will reduce capital spending to 775 million pounds ($1.2 billion) this year and 550 million pounds next year.

FTSE 100 6,759.62 +3.99 +0.06%

CAC 40 3,998.75 -24.10 -0.60%

DAX 8,414.95 -40.88 -0.48%

House price inflation in the UK increased more than forecast in March, a report from the Office for National Statistics showed Tuesday.

The ONS house price index rose 2.7 percent year-on-year in March, faster than a 1.9 percent gain in February. Economists expected the rate of inflation to edge up to 2 percent.

The average mix-adjusted house price stood at GBP 235,000 during the month. On a month-on-month seasonally adjusted basis, the price index rose 0.4 percent in March after a flat reading in February.

House prices in England rose 3 percent year-on-year in March and prices grew 1.2 percent in Wales. These gains were offset by declines of 1.7 percent in Scotland and 2 percent in Northern Ireland.

In March, prices paid by first-time buyers were 1.3 percent higher on average than in March 2012. For owner-occupiers, prices increased 3.2 percent for the same period.

U.K. consumer price inflation slowed more than expected in April, to the lowest since September, data showed Tuesday.

Annual inflation fell to 2.4 percent from 2.8 percent in March, the Office for National Statistics said. Inflation was expected to ease to 2.6 percent. It has moved closer to the central bank's 2 percent target.

Month-on-month, consumer prices gained 0.2 percent, slightly weaker than the prior month's 0.3 percent increase and also below the 0.4 percent rise forecast by economists. Core inflation that excludes energy, food, alcoholic beverages and tobacco slowed to 2 percent from 2.4 percent a month ago. The rate was marginally below the consensus forecast of 2.3 percent.

CPIH, the new measure of consumer price inflation including owner occupiers' housing costs, grew 2.2 percent from a year ago, down from 2.6 percent in March.

At the same time, retail price inflation eased sharply to 2.9 percent in April, while it was forecast to fall to 3.1 percent.

EUR/USD $1.2800, $1.2845, $1.2850, $1.2900, $1.2975

USD/JPY Y101.50, Y101.65, Y102.00, Y102.25, Y103.00

EUR/JPY Y132.00

GBP/USD $1.5300

USD/CHF Chf0.9625

AUD/USD $0.9775, $0.9800, $0.9805, $0.9900, $1.0000

Asia's benchmark stock index swung between gains and losses as Australian banks fell, Goldman Sachs Group Inc. sold a $1.1 billion stake in Industrial & Commercial Bank of China Ltd., and Tokyo Electric Power Co. surged.

Nikkei 225 15,381.02 +20.21 +0.13%

S&P/ASX 200 5,180.1 -28.93 -0.56%

Shanghai Composite 2,300.61 +0.62 +0.03%

ICBC, the world's largest lender by market value, sank 2 percent in Hong Kong.

Westpac Banking Corp. and Commonwealth Bank of Australia, the two biggest Australian lenders, each slid at least 1 percent as minutes of this month's central bank meeting highlighted concern about business conditions.

00:00 Australia Conference Board Australia Leading Index March +0.3% +0.1%

01:30 Australia RBA Meeting's Minutes May

03:00 New Zealand Credit Card Spending April -0.3% +0.4%

03:00 New Zealand Expected Annual Inflation 2y from now Quarter II +2.2% +2.1%

04:30 Japan All Industry Activity Index, m/m March +0.6% -0.3% -0.3%

The yen weakened against its major peers after Japan's Economy Minister Akira Amari backed away from weekend comments that prompted the currency to rally. Japan's currency climbed yesterday after Amari said further weakness may hurt "people's lives" and it was the government's job to minimize that. The minister said today he wouldn't comment on where the yen's decline would end. Amari said today he hopes the exchange rate will stabilize at a level that matches the nation's economic fundamentals. The Bank of Japan starts a two-day policy meeting today. BOJ Governor Haruhiko Kuroda said at a government meeting that it's natural for bond yields to rise gradually as the outlook for the economy and consumer prices improves, a Cabinet Office official told reporters yesterday.

The dollar remained lower versus the euro following a decline yesterday before Federal Reserve Chairman Ben S. Bernanke and other central bank officials speak this week. St. Louis Fed President James Bullard and New York Fed President William C. Dudley will speak today before Bernanke testifies in Congress tomorrow. Bullard said on April 17 that inflation had fallen too far below the Fed's 2 percent goal, and a further drop could prompt increased asset purchases by the central bank.

EUR / USD: during the Asian session, the pair traded in the range of $ 1.2860-00

GBP / USD: during the Asian session, the pair fell to $ 1.5220

USD / JPY: during the Asian session, the pair rose to Y102.75

Europe returns to the fray Tuesday after the Whitsun holiday. It is worth noting the Bank of Japan starts a two-day meeting today, with the outcome - expected Wednesday - likely to be no change in policy, as the board allows recent stimulus time to bed in. The European calendar gets underway at at 0600GMT, with the release of the German April PPI numbers. At 0700GMT, the Swiss National Bank is set to publish its Monthly Statistical Bulletin and Monthly Bulleting of Banking Statistics. At 1000GMT, the Bundesbank's monthly report will cross the wires. Riskbank Gov. Stefan Ingves will give a presentation on managing banking crises, in Stockholm from 1115GMT. Back in Europe, at 1300GMT, the Eurosystem's consolidated financial statement is set to hit the wires. At 1630GMT, ECB Executive Board member Peter Praet will deliver a speech on monetary policy in the context of balance sheet adjustment, to the Peterson Institute in Washington. ECB Governing Council Member Ewald Nowotny will speak at an award ceremony in Vienna from 1700GMT.

Change % Change Last

GOLD 1,392.80 28.10 2.06%

OIL (WTI) 96.71 0.69 0.72%

Change % Change Last

Nikkei 225 15,360.81 +222.69 +1.47%

S&P/ASX 200 5,209 +28.23 +0.54%

Shanghai Composite 2,299.2 +16.33 +0.72%

FTSE 100 6,755.63 +32.57 +0.48%

CAC 40 4,022.85 +21.58 +0.54%

DAX 8,455.83 +57.83 +0.69%

Dow -18.28 15,336.12 -0.12%

Nasdaq -2.54 3,496.43 -0.07%

S&P -1.19 1,666.28 -0.07%

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

EUR/USD $1,2884 +0,37%

GBP/USD $1,5256 +0,58%

USD/CHF Chf0,9665 -0,59%

USD/JPY Y102,26 -0,95%

EUR/JPY Y131,74 -0,57%

GBP/JPY Y156,01 -0,35%

AUD/USD $0,9805 +0,76%

NZD/USD $0,8173 +1,33%

USD/CAD C$1,0241 -0,37%

00:00 Australia Conference Board Australia Leading Index March +0.3%

01:30 Australia RBA Meeting's Minutes May

03:00 New Zealand Credit Card Spending April -0.3%

03:00 New Zealand Expected Annual Inflation 2y from now Quarter II +2.2%

04:30 Japan All Industry Activity Index, m/m March +0.6% -0.3%

06:00 Germany Producer Price Index (MoM) April -0.2% -0.1%

06:00 Germany Producer Price Index (YoY) April +0.4% +0.1%

08:30 United Kingdom Retail Price Index, m/m April +0.4% +0.5%

08:30 United Kingdom Retail prices, Y/Y April +3.3% +3.1%

08:30 United Kingdom RPI-X, Y/Y April +3.2% +3.0%

08:30 United Kingdom Producer Price Index - Input (MoM) April -0.1% -1.2%

08:30 United Kingdom Producer Price Index - Input (YoY) April +0.4% +0.3%

08:30 United Kingdom Producer Price Index - Output (MoM) April +0.3% +0.3%

08:30 United Kingdom Producer Price Index - Output (YoY) April +2.0% +1.4%

08:30 United Kingdom HICP, m/m April +0.3% +0.4%

08:30 United Kingdom HICP, Y/Y April +2.8% +2.6%

08:30 United Kingdom HICP ex EFAT, Y/Y April +2.4% +2.3%

14:00 U.S. Treasury Sec Lew Speaks May

15:30 U.S. FOMC Member James Bullard Speaks

16:45 Canada BOC Gov Carney Speaks

20:30 U.S. API Crude Oil Inventories May +1.1