The dollar rose against the euro significantly, playing the news from the Fed. Investors buy U.S. dollars after the U.S. central bank has signaled that it plans to reduce the amount of monthly purchases of bonds by the end of this year if the economy continues to improve.

Add that today published data on balance of payments euro-zone, which had no material impact on the single currency. The surplus of the current account of balance of payments euro area in April fell from historic highs, but remained at a high level. The surplus of the current account deficit declined in April to 19.5 billion euros (25.7 billion dollars) against the maximum level ever of 25.9 billion euros in March. The data presented are adjusted for seasonal factors and the number of working days in each month. Trade surplus in April, the euro area reached 18.1 billion euros against 22.5 billion in March, indicating a continuing excess of exports over imports.

The pound fell against the U.S. dollar, but was able to regain some of their losses against the Fed's comments Byllarda, who noted that the Fed should focus on keeping inflation close to the target yrovnya, and do less strong emphasis on the market tryda.

Byllard expects yroven ypadet unemployment rate to 7.1% by kontsy 2013. In addition, it was reported that Byllard rosty lowered the forecast for U.S. GDP in 2013 to 2.8% from 3%. In his view, the Fed may have to consider further easing if inflation slows further

Add that to the dynamics of trade affected by the report of the National Bureau of Statistics of the United Kingdom (ONS), which showed that the government borrowed in May, much less than expected. However, the data is improved due payments in the amount of 3.2 billion pounds ($ 4.9 billion) received from Swiss banks under the new tax treaty between the UK and Switzerland, as well as the transfer of profits from the program of bond purchases the Bank of England, which was 3.9 billion pounds. These two factors, net borrowing of the public sector, the government preferred indicator of the budget deficit in May amounted to 8.8 billion pounds. It is 6.9 billion pounds lower than in May last year. Excluding payments from Swiss banks and the transfer of the Bank of England's public sector net borrowing in May totaled 15.9 billion pounds, slightly more than in May 2012.

The Canadian dollar declined significantly against the U.S. dollar after data showed that Canadian inflation rose in May, less than expected, while natural gas prices rose at the fastest annual pace in nearly four and a half years, while the costs powered slowed down, and gasoline prices declined.

The consumer price index (CPI) of Canada in May rose by 0.2% compared with April, when it fell by the same amount. In annual terms, consumer price growth rose to 0.7% compared to the three and a half year low of 0.4% reached in April.

Economists had expected the index of consumer prices rise by 0.4% compared with the previous month and by 0.9% in annual terms.

Consumer Price Index (Core CPI), which excludes the eight most volatile components, including food and energy, rose 0.2% on the month, compared with 0.1% in April. An annual increase of 1.1%, as in April.

In seasonally adjusted monthly CPI rose 0.1% after falling 0.4% the previous month, and the base remained unchanged.

European stocks fell, with the Stoxx Europe 600 Index heading for its biggest weekly decline in 13 months, as Greek Prime Minister Antonis Samaras lost one of his two coalition partners and investors weighed the outlook for Federal Reserve stimulus measures.

The Stoxx 600 declined 0.9 percent to 281.08 at 4:30 p.m. in London after earlier gaining as much as 1 percent. The equity benchmark is heading for its fifth weekly decline, the longest streak of losses in two years, as the Fed said it may end bond purchases next year if the economy strengthens in line with forecasts. The gauge has pared its yearly gain to 0.5 percent.

In Greece, the Democratic Left party withdrew its ministers from the coalition government amid disagreement over Samaras's decision to close the nation's public broadcaster. The departure of the party's 14 lawmakers would leave the premier with a parliamentary majority of only three seats.

Democratic Left leader Fotis Kouvelis said he believes Greece doesn't need new elections and will support efforts to keep the country in the euro, according to statement read out on Athens-based Skai TV.

National Indexes

National benchmark indexes fell in 14 of the 16 western European markets open today.

FTSE 100 6,116.17 -43.34 -0.70% CAC 40 3,658.04 -40.89 -1.11% DAX 7,789.24 -139.24 -1.76%

In China, benchmark money-market rates tumbled from record highs after the central bank injected funds to alleviate the worst cash crunch in at least a decade. The People's Bank of China added funds to the financial system via short-term liquidity operations yesterday, according to Hao Hong, chief China strategist at Bank of Communications Co. in Hong Kong.

European Union finance ministers meet today in Luxembourg to discuss proposals for bank supervision, focusing on laws for the resolution of failed banks.

The European Central Bank probably won't take over as euro-area bank supervisor until the end of 2014, in part because of German approval procedures, according to two European officials who spoke on condition of anonymity. This contrasts with an initial goal of moving to the new system in March, later pushed back to July.

National Bank of Greece fell 11 percent to 3.25 euros, while bookmaker OPAP SA decreased 5.2 percent to 6.35 euros.

SAP AG declined 2.9 percent to 54.99 euros. Oracle, the largest maker of database software, late yesterday posted quarterly sales that missed estimates and forecast profit for the current quarter at the lower end of analysts' projections.

Groupe Eurotunnel (GET), which operates the tunnel connecting England and France, dropped 6.5 percent to 5.14 euros, the lowest price since January 2012, as Natixis and RBC Capital Markets LLC cut their ratings on the stock.

Danone, which owns the Evian water brand, rallied 2.5 percent to 56.47 euros. JPMorgan Chase & Co. raised the stock to overweight, similar to a buy rating, from neutral, with analyst Celine Pannuti predicting earnings-per-share growth of 10 percent from next year.

The cost of oil has dropped significantly, while continuing its yesterday's fall, and fall below $ 101, which was due to concerns over a slowdown in demand and the adequacy of reserves, as well as plans for the Federal Reserve to reduce the amount of their incentive programs.

Recall that yesterday the oil showed the greatest drop-session on news the Federal Reserve and weak manufacturing data from China, which put additional pressure. According to the report, this month the manufacturing purchasing managers' index fell to 48.3, compared with a final reading in May at 49.2. It is worth noting that the index is now at its lowest level in nine months. Studies have also found that the production index for the manufacturing sector fell in June to the level of 48.8 from 50.7, while reaching the lowest level in eight months. Add that employment in this sector has also declined at a faster pace. Meanwhile, the rate of decline has slowed in purchase prices and selling prices for the products continued a downward trend, with the rate accelerating its fall compared to the previous month.

Experts note that the slowdown in the manufacturing sector in China, of course, assumes that the growth in demand for oil in one of the world's largest consumer of oil will slow down.

However, prices gain some support from concerns about potential supply disruptions in the Middle East, and confrontations in Syria that threatens to engulf neighboring countries.

The cost of the July futures on U.S. light crude oil WTI (Light Sweet Crude Oil) fell to 93.66 dollars a barrel on the New York Mercantile Exchange.

August futures price for North Sea Brent crude oil mixture fell by $ 1.77 to $ 100.32 a barrel on the London exchange ICE Futures Europe.

Gold prices rose slightly, while recovering from a three-year low that was reached yesterday, however, still remains on track for its largest weekly decline in nearly two years. We add that the value of the precious metal fell by 7%. This trend was primarily related to the alleged head of the U.S. Federal Reserve, which signaled the decline in asset-purchase program later this year if the economy shows signs of recovery.

Experts suggest that the prices of precious metals will consolidate near current lows, but there is little chance of a significant rebound. Also, they added that so far there is little sign of the revenge increasing physical purchases, as recent statements spooked market participants, and they prefer to stay out of the market.

We also add that the gold reserves in the exchange-traded fund, which is a popular way to invest in times of financial crisis, fell more than 485 tons this year.

The largest fund SPDR Gold Trust said yesterday that inventories fell by 4.5 tons, the lowest level in more than four years, appeared on 26% below its peak (December 2012) in the amount of 1,353 tons.

In addition, it was reported that the volume of purchases from the largest consumer of gold - India remained subdued, despite the drop in prices on Thursday, in contrast to the significant purchases during the April decline. However, traders have reported a surge in demand from China, which is the second largest consumer of gold.

The cost of the August gold futures on COMEX today rose to 1290.00 dollars an ounce.

USD/JPY Y95.00, Y95.65, Y96.50, Y97.00, Y97.25, Y98.00, Y99.00

AUD/USD $0.9215, $0.9245, $0.9260, $0.9400, $0.9420, $0.9500

GBP/USD $1.5400, $1.5500, $1.5650, $1.5680, $1.5735

EUR/CHF Chf1.2200, Chf1.2250, Chf1.2300, Chf1.2430, Chf1.2435

EUR/AUD A$1.4250

USD/CHF Chf0.9270

USD/CAD C$1.0345, C$1.0365, C$1.0450

Canadian inflation rose less than expected in May as natural gas prices grew at the fastest annual pace in nearly four and a half years while food costs slowed and gasoline prices shrank, showing no pressure for the central bank to hike rates.

The headline or all-items consumer price index rebounded 0.2% on a monthly basis after a decline of the same magnitude in April, lifting the year-on-year rate to 0.7% from a three-and-a-half year low of 0.4%, Statistics Canada said Friday.

The core rate, which excludes eight of the most volatile components, including some food and energy prices, rose 0.2% on a monthly basis from 0.1% previously, for an annual increase of 1.1%, the same rate as in April.

The consensus call was for the headline CPI to grow 0.9% from a a year ago and the core rate to rise 1.2%, according to a report from Royal Bank of Canada.

On a seasonally adjusted basis, the monthly headline CPI climbed 0.1% after declining 0.4% previously, and the core rate was flat.

U.S. stock futures rose, signaling the indexes will rebound from the biggest plunge since November 2011.

Global Stocks:

Nikkei 13,230.13 +215.55 +1.66%

Hang Seng 20,263.31 -119.56 -0.59%

Shanghai Composite 2,073.1 -10.93 -0.52%

FTSE 6,169.27 +9.76 +0.16%

CAC 3,703.81 +4.88 +0.13%

DAX 7,907.88 -20.60 -0.26%

Crude oil $95.08 -0.06%

Gold $1291.90 +0.44%

Upgrades:

Facebook (FB) upgraded to Buy with $30 price target and a $36 "upside scenario" at UBS

Downgrades:

Other:

Exxon Mobil (XOM) initiated at Outperform at Wells Fargo

Chevron (CVX) initiated at Outperform at Wells Fargo

Canadian retail sales grew less than expected in April as increased spending on new vehicles, electronics and appliances were offset by a decline in gasoline prices and lower clothing sales.

The value of sales edged up 0.1% to 39.52 billion Canadian dollars ($38.10 billion) from an unrevised flat reading in March, Statistics Canada said Friday.

Sales excluding vehicles and auto parts shrank unexpectedly by 0.3% to C$30.46 billion, the same as the prior month, which was revised down from the originally estimated 0.2% drop.

The consensus call was for overall sales to grow 0.2% and the ex-auto figure to be flat, according to a report from Royal Bank of Canada.

Sales volume, which feeds into the calculation of economic growth for the month presented a brighter picture, growing 0.5%.

08:00 Eurozone Current account, adjusted, bln April 25.9 15.1 19.5

08:00 Switzerland KOF Institute Economic Forecast Quarter III

08:30 United Kingdom PSNB, bln May 8.0 13.5 10.5

09:00 Eurozone ECOFIN Meetings June

The euro continues to fall against the U.S. dollar, regaining news from the Fed. Investors buy U.S. dollars after the U.S. central bank has signaled that it plans to reduce the amount of monthly purchases of bonds by the end of this year if the economy continues to improve.

Today we have published data on the euro area balance of payments, which had no material impact on the single currency. The surplus of the current account of balance of payments euro area in April fell from historic highs, but remained at a high level. The surplus of the current account deficit declined in April to 19.5 billion euros (25.7 billion dollars) against the maximum level ever of 25.9 billion euros in March. The data presented are adjusted for seasonal factors and the number of working days in each month. Trade surplus in April, the euro area reached 18.1 billion euros against 22.5 billion in March, indicating a continuing excess of exports over imports.

Dollar a week is growing against all major currencies in anticipation of the block of macroeconomic statistics in the United States, which will be released next week. June 25 U.S. Department of Commerce will present the figures on orders for durable goods, which, according to analysts, the rise in May, up 3% compared with April. Expected positive report and the real estate market. According to experts, the April housing price index from the S & P / Case-Shiller will grow by 10.6% compared with a year earlier. These may correspond to the March figures, which showed the highest growth in the last seven years.

Pound was lower against the U.S. dollar on the background data on public sector borrowing in Britain. The National Bureau of Statistics of the United Kingdom (ONS) on Friday released data that showed that the government borrowed in May, much less than expected. However, the data is improved due payments in the amount of 3.2 billion pounds ($ 4.9 billion) received from Swiss banks under the new tax treaty between the UK and Switzerland, as well as the transfer of profits from the program of bond purchases the Bank of England, which was 3.9 billion pounds. These two factors, net borrowing of the public sector, the government preferred indicator of the budget deficit in May amounted to 8.8 billion pounds. It is 6.9 billion pounds lower than in May last year. Excluding payments from Swiss banks and the transfer of the Bank of England's public sector net borrowing in May totaled 15.9 billion pounds, slightly more than in May 2012.

EUR / USD: during the European session, the pair fell to $ 1.3180, and continues to decline

GBP / USD: during the European session, the pair fell to $ 1.5430, and continues to decline

USD / JPY: during the European session, the pair rose to Y98.14

At 12:30 GMT Canada will release the consumer price index, core consumer price index from the Bank of Canada in May, the change in volume of retail sales and the change in retail sales excluding auto sales for April.

EUR/USD

Offers $1.3350, $1.3320, $1.3300, $1.3270/80, $1.3250/55

Bids $1.3150, $1.3135/30

GBP/USD

Offers $1.5650, $1.5590/00, $1.5550

Bids $1.5450, $1.5420, $1.5405/00

AUD/USD

Offers $0.9400, $0.9350, $0.9300, $0.9270/80

Bids $0.9150, $0.9100

EUR/JPY

Offers Y130.20, Y130.00, Y129.80, Y129.20/25

Bids Y128.50, Y128.00, Y127.55/50, Y127.10/00

EUR/GBP

Offers stg0.8650, stg0.8620, stg0.8595/600, stg0.8575/80

Bids stg0.8510/00, stg0.8475/70, stg0.8465/60, stg0.8450

USD/JPY

Offers Y99.00, Y98.50, Y98.25/30, Y98.15/20, Y97.80/85

Bids Y97.20, Y97.00, Y96.80, Y96.50/40, Y96.25/20, Y96.00

European stocks advanced, with the benchmark Stoxx Europe 600 Index rebounding from its biggest drop in 19 months. U.S. futures gained and Asian shares were little changed.

European Union finance ministers meet today in Luxembourg to discuss proposals for bank supervision, focusing on laws for the resolution of failed banks.

The European Central Bank probably won't take over as euro-area bank supervisor until the end of 2014, in part because of German approval procedures, according to two European officials who spoke on condition of anonymity. This contrasts with an initial goal of moving to the new system in March, later pushed back to July.

A gauge of commodity producers on the Stoxx 600 rebounded from the lowest level since July 2009. Rio Tinto added 1.2 percent to 2,705.5 pence, Antofagasta rose 1.5 percent to 836.5 pence, while Glencore Xstrata Plc climbed 1 percent to 295.5 pence.

Bayer increased 1.7 percent to 81.95 euros after Goldman Sachs raised its rating on the maker of drugs and agricultural chemicals to buy from neutral, saying the price doesn't reflect recent earnings and growth improvements.

SAP AG declined 2 percent to 55.52 euros. U.S. peer Oracle Corp., the largest maker of database software, late yesterday posted quarterly of sales that missed estimates and forecast profit for the current quarter at the lower end of analysts' projections.

FTSE 100 6,225.67 +66.16 +1.07%

CAC 40 3,733.42 +34.49 +0.93%

DAX 7,965.4 +36.92 +0.47%

EUR/USD $1.2900, $1.3200, $1.3300, $1.3325, $1.3350, $1.3400

USD/JPY Y95.00, Y95.65, Y96.50, Y97.00, Y97.25, Y98.00

AUD/USD $0.9245, $0.9260, $0.9400, $0.9420

CBP/USD $1.5400, $1.5500, $1.5650, $1.5680, $1.5735

EUR/CHF Chf1.2200, Chf1.2250, Chf1.2430, Chf1.2435, Chf1.2500

EUR/AUD A$1.4250

USD/CHF Chf0.9270, Chf0.9600

USD/CAD C$1.0345

Asian stocks outside Japan fell, with a regional gauge heading for its lowest close since September, amid concern the Federal Reserve will reduce stimulus and China's economic slowdown may deepen as a cash crunch worsens.

Nikkei 225 13,230.13 +215.55 +1.66 %

Hang Seng 20,258.27 -124.60 -0.61 %

S&P/ASX 200 4,738.8 -19.59 -0.41 %

Shanghai Composite 2,073.78 -10.24 -0.49 %

Guangzhou R&F Properties Co. dropped 2.9 percent, pacing losses among Chinese developers after the nation's money-market rates retreated from records.

Newcrest Mining Ltd., Australia's No. 1 gold producer, slumped 3.7 percent as the bullion headed for its biggest weekly drop since September 2011. Honda Motor Co. rose 2 percent, pacing gains among Japanese exporters after the yen weakened.

06:35 Japan BOJ Governor Haruhiko Kuroda Speaks

The euro snapped a two-day decline before data today on the region's current-account balance, which climbed to a record in March amid speculation investors repatriated funds from emerging markets. The European Central Bank will release data on the currency bloc's current-account balance today. A surplus in the balance, the broadest measure of international trade, climbed to 25.9 billion euros ($34.3 billion) in March on a seasonally adjusted basis, the highest on record dating back to 1997.

The dollar headed for a weekly gain against all of its 16 major peers before U.S. data next week on home prices and durable-goods orders that may add to the case for a reduction in monetary stimulus that was outlined by the Federal Reserve on June 19. The U.S. Commerce Department is likely to say on June 25 that orders for U.S. durable goods rose 3 percent in May from April, expanding for a second month, according to the median estimate of economists in a Bloomberg News survey. A separate report may show the same day that the S&P/Case-Shiller index of property values jumped 10.6 percent in April from a year earlier, according to another poll of economists. That would almost match March's increase which was the most in seven years.

The yen erased an earlier gain along with Asian stocks before a speech today by Bank of Japan Governor Haruhiko Kuroda.

EUR / USD: during the Asian session the pair rose to $ 1.3255

GBP / USD: during the Asian session the pair traded in the range of $ 1.5490/20

USD / JPY: during the Asian session the pair rose above Y97.50

Friday sees a quieter calendar, although markets will continue to deal with the fall out from the FOMC and the Bernanke comments. The data releases start at 0645GMT, with the release of the French Q1 employment and wages data. Economists are looking for a wages increase of 0.7% on quarter. Bundesbank Board member Joachim Nagel will give a speech on the euro crisis and German banks, starting at 0700GMT. Further EMU data will be released at 0800GMT, when the ECB April current account numbers will be released. At 0930GMT, the German government spokesperson will hold the regular press briefing, in Berlin.

Change % Change Last

GOLD 1,277.20 -96.40 -7.02%

OIL (WTI) 95.40 -2.84 -2.89%

Nikkei 225 13,014.58 -230.64 -1.74%

Hang Seng 20,431.95 -554.94 -2.64%

S&P/ASX 200 4,758.4 -102.98 -2.12%

Shanghai Composite 2,089.23 -54.22 -2.53%

FTSE 100 6,159.51 -189.31 -2.98%

CAC 40 3,698.93 -140.41 -3.66%

DAX 7,928.48 -268.60 -3.28%

Dow -352.11 14,760.08 -2.33%

Nasdaq -78.56 3,364.64 -2.28%

S&P -40.6 1,588.33 -2.49%

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

EUR/USD $1,3225 -0,53%

GBP/USD $1,5503 +0,12%

USD/CHF Chf0,9270 -0,10%

USD/JPY Y97,34 +1,09%

EUR/JPY Y128,70 +0,52%

GBP/JPY Y150,86 +1,17%

AUD/USD $0,9204 -0,83%

NZD/USD $0,7764 -1,57%

USD/CAD C$1,0379 +1,05%

06:35 Japan BOJ Governor Haruhiko Kuroda Speaks

08:00 Eurozone Current account, adjusted, bln April 25.9 15.1

08:00 Switzerland KOF Institute Economic Forecast Quarter III

08:30 United Kingdom PSNB, bln May 8.0 13.5

09:00 Eurozone ECOFIN Meetings June

12:30 Canada Retail Sales, m/m April 0.0% +0.2%

12:30 Canada Retail Sales ex Autos, m/m April -0.2% 0.0%

12:30 Canada Consumer Price Index m / m May -0.2% +0.4%

12:30 Canada Consumer price index, y/y May +0.4% +0.9%

12:30 Canada Bank of Canada Consumer Price Index Core, m/m May +0.1% +0.3%

12:30 Canada Bank of Canada Consumer Price Index Core, y/y May +1.1% +1.1%