The Canadian dollar fell against the U.S. dollar after the Bank of Canada left interest rates unchanged and said to increase the economic growth projections . Canada's central bank left its benchmark one-day interest rate unchanged , at 1% , stating that the importance of the downside risks to inflation increased. However , it raised its forecasts for GDP growth , expecting increased demand from the U.S. and a lower Canadian dollar will boost exports.

Monetary policy of the Bank of Canada aims to maintain inflation at around 2% . The Bank noted that inflation, which was weak , yet dropped below the target level . The central bank attributed the low rates in a severe economic downturn and competition among retailers .

The Bank of Canada said that the balance of risks to the economy is the same as in October , and the risks associated with imbalances in the housing market " has not changed substantially ."

According to the quarterly report of the Bank of Canada's monetary policy , the risks with regard to inflation expectations " broadly balanced " , with a certain degree of competition in the retail sector in Canada temporarily affect prices . It "does not necessarily provoke a response of monetary policy " , if inflation expectations do not change.

The statement said that the return of inflation to the target level of 2 % " will take about two years ," while the negative impact from the high competition among retailers is weakening, and excess capacity absorbed. Projections for basic and general inflation were lowered for most quarters until the end of 2015.

The Bank of Canada raised its forecast for GDP growth in Canada in 2013 to 1.8 % from 1.6% , and it is now believed that the GDP in the 4th quarter increased by 2.5% per annum , while in October it predicted growth 2.3%. The central bank also raised its forecast for GDP growth in 2014 to 2.5% from 2.3 %, but lowered its forecast for 2015 to 2.5% from 2.6% . Such forecasts for GDP growth suggests that the economy will return to full capacity over the next two years.

Pound rose sharply against the U.S. dollar , which helped data that showed that the unemployment rate fell to its lowest level in nearly five years , while approaching to the 7 percent threshold at which the Bank of England officials may begin to reconsider the amount of the asset purchase program . According to the report , the unemployment rate , as measured by the standards of the International Labour Organization , fell to 7.1 percent in the three months to November , compared with 7.4 per cent , which were recorded in the previous three-month period ( October) . Office for National Statistics said that according to the median forecast of economists unemployment was down to 7.3 percent . In addition, it was reported that in December, the number of applications for unemployment benefits fell by 24 thousand, which was much less than economists forecast - at 32.3 thousand Meanwhile, the report showed that the number of unemployed fell by 167,000 to 2.32 million in the three months to November compared with the previous three-month period . Add that it was the biggest decline since October 1997 and the second largest since records began this statistic in 1971.

Yen demonstrates mixed against the dollar, which has been associated with the decision the Bank of Japan to refrain from expanding the program of monetary stimulus . We also add that the Bank of Japan left unchanged targets expansion of the monetary base in the range of 60 trillion yen to 70 trillion yen ( $ 671 billion ) a year and confirmed forecast that core inflation in the 2015 fiscal year , which begins in April , will be on level of 1.9%. Fewer economists expect that the Central Bank will go to expand stimulus measures in 2014, as inflation accelerating. The dollar index fell , retreating from a two-week high on speculation that the Fed meeting on January 28-29, reduce the purchase of assets by $ 10 billion to $ 65 billion a month, and will continue to minimize the QE at the same pace in future meetings .

European stocks were little changed, with the Stoxx Europe 600 Index at a six-year high, as a rally in ASML Holding NV offset a decline in ABB Ltd.

The Stoxx 600 added 0.1 percent to 336.06 at the close of trading, its highest level since January 2008. The benchmark gauge has gained 2.4 percent so far this year as the World Bank and the International Monetary Fund raised their forecasts for global growth.

In the U.K., data from the Office for National Statistics showed that unemployment measured by International Labour Organization methods fell to 7.1 percent in the three months through November.

The Bank of England’s Monetary Policy Committee doesn’t see any immediate need to raise interest rates even if unemployment declines to the 7 percent threshold for considering tightening, according to minutes of the Jan. 8-9 meeting published today. MPC officials said cost pressures remained subdued and economic growth faced continuing headwinds.

National benchmark indexes fell in 10 of the 18 western European markets. The U.K.’s FTSE 100 slipped 0.1 percent, Germany’s DAX lost 0.1 percent, while France’s CAC 40 climbed less than 0.1 percent.

ASML rallied 7 percent to 67.51 euros after saying it will increase its 2013 dividend by 15 percent. Europe’s largest semiconductor-equipment supplier will pay 61 euro cents a share, up from 53 euro cents a year earlier.

Rautaruukki rallied 33 percent, its biggest gain since at least 1992, to 9.17 euros after SSAB offered to buy the Finnish steelmaker in a stock swap worth 10.1 billion kronor ($1.56 billion). SSAB, a Swedish steelmaker, surged 12 percent to 54.35 kronor.

For each Rautaruukki share, shareholders will get 0.4752 newly issued SSAB class A shares and 1.2131 new class B shares. The offer represents a premium for Rautaruukki shareholders of 20 percent, based on the closing prices of the company’s and SSAB’s shares on Jan. 21.

Sage Group Plc climbed 3.3 percent to 426.9 pence after the software-publishing company said it expects to meet its target of 6 percent growth in so-called organic revenue in 2015.

ABB dropped 3.6 percent to 23.34 Swiss francs after saying it will book $260 million in charges because of “operational issues” at its Power Systems division and delays to offshore wind projects. “This means we will not be able to deliver our profitability target for the division in the quarter,” Chief Executive Officer Ulrich Spiesshofer said in a statement.

Gold prices traded in a narrow range with a moderate decrease , while investors expect the Fed to further reduce the incentives and evaluate improved forecasts for global economic growth .

Investors withdraw from the market for gold is more risky and profitable stock market , seeing the growth of the world economy led by the U.S. .

Market participants fear reductions in programs QE3I U.S. Fed , as it would strengthen the U.S. currency and adversely affect the demand for safe assets , including gold .

Analysts believe that the outcome of the meeting of the Committee on the Federal Reserve Open Market January 28-29, will be decided to reduce the program QE3 by another $ 10 billion - to $ 65 billion per month .

Experts believe that volatility will increase significantly in the next week on the eve of the Fed statement .

International Monetary Fund (IMF ) on Tuesday for the first time in nearly two years, raised its forecast for global economic growth.

The >

U.S. stock-index futures were little changed, as investors assessed earnings from companies including Coach Inc. and International Business Machines Corp.

Global markets:

Nikkei 15,820.96 +25.00 +0.16%

Hang Seng 23,082.25 +49.13 +0.21%

Shanghai Composite 2,051.75 +43.44 +2.16%

FTSE 6,832.77 -1.49 -0.02%

CAC 4,333.44 +9.57 +0.22%

DAX 9,739.11 +8.99 +0.09%

Crude oil $94.88 (+0.98%)

Gold $1241.40 (-0.03%).

USD/JPY Y104.05, Y104.15, Y105.00(VL), Y105.50, Y105.75, Y106.00

EUR/USD $1.3500, $1.3520, $1.3550, $1.3590, $1.3600, $1.3625, $1.3640, $1.3650

GBP/USD $1.6450

EUR/GBP Stg0.8200

USD/CHF Chf0.9100, Chf0.9150

AUD/USD $0.8800, $0.8825, $0.8900, $0.9000

AUD/JPY Y90.95, Y91.50, Y92.25, Y93.00

USD/CAD C$1.0940, C$1.1025

Data

00:30 Australia Consumer Price Index m / m +1.2 % III m +0.5 % +0.8%

00:30 Australia Consumer Price Index y / y III quarter +2.2% +2.5 % +2.7 %

03:00 Japan Interest Rate Decision Bank of Japan 0.10% 0.10 % 0.10%

03:00 Japan monetary base Trust Bank of Japan, trillion yen 270,270,270

03:00 Comments Japan BoJ monetary policy

04:30 Japan PMI in all sectors, m / m in November -0.2% +0.4% +0.3%

07:30 Press Conference Japan Bank of Japan

09:00 Switzerland World Economic Forum Annual

09:30 UK Change of average earnings (excluding bonuses) , 3 m / y November +0.8% +1.0 % +0.9 %

09:30 UK Change of average earnings , 3 m / y November +0.9 % +1.1 % +0.9 %

09:30 UK BoE Minutes

09:30 UK Net borrowing state . sector , 15.1 billion in December Revised 14.8 12.3 10.3

09:30 UK Number of applications for unemployment benefits , th December -34.3 -36.7 -32.3 Revised to -24.0

09:30 UK jobless claims level of employment in December 3.8 % 3.7 % 3.7%

09:30 UK ILO unemployment rate in November 7.4 % 7.3 % 7.1%

10:00 Switzerland Index according to the expectations of investors and Credit Suisse ZEW January 39.4 44.0 36.4

Rate of the euro regained almost all previously lost ground against the dollar , as the participants' attention gradually switched to tomorrow's data for the euro area . Note that on Thursday will present data on the PMI indices for Germany and the euro zone in January . These figures have been mainly in the expansion over the past six months , but close to the mark of 50 points, which separates expansion from contraction. In addition, they showed that not much is happening in the Eurozone economy , although the German economy continues to show a slight increase, which was observed until now. Thus , a number of better-than -expected readings on the PMI will be a " breath of fresh air " in this area. Meanwhile, add that, given the fact that the World Bank raised its growth forecast for developed countries, the last reading is likely to help confirm this improvement . According to the average forecast in January PMI for the manufacturing sector is expected at 53.2 compared to 52.7 last month , and PMI for the services sector - at the level of 51.5 , compared with 51.0 in December.

Pound rose sharply against the U.S. dollar , which helped data that showed that the unemployment rate fell to its lowest level in nearly five years , while approaching to the 7 percent threshold at which the Bank of England officials may begin to reconsider the amount of the asset purchase program . According to the report , the unemployment rate , as measured by the standards of the International Labour Organization , fell to 7.1 percent in the three months to November , compared with 7.4 per cent , which were recorded in the previous three-month period ( October) . Office for National Statistics said that according to the median forecast of economists unemployment was down to 7.3 percent . In addition, it was reported that in December, the number of applications for unemployment benefits fell by 24 thousand, which was much less than economists forecast - at 32.3 thousand Meanwhile, the report showed that the number of unemployed fell by 167,000 to 2.32 million in the three months to November compared with the previous three-month period . Add that it was the biggest decline since October 1997 and the second largest since records began this statistic in 1971.

The Canadian dollar rose slightly against the U.S. dollar in anticipation of the decision of the Bank of Canada. The Bank of Canada is likely to leave rates unchanged at 1%, but all the attention will be focused on the accompanying statement . It is assumed that the monetary authorities will focus again on inflation below the target level , resorting to rhetoric pigeon . However , the Bank is unlikely to be mention of further easing . Governor of the Bank of Canada Stephen Poloz previously reported that it will not raise rates until the employment will not rise and consumer spending will not recover . And since employment in Canada declined by 45 thousand in the last month , it is clear that the economy is still far from those conditions which , according to the runners needed to improve . However, the program can help minimize the Fed CB. Since Canada bond yields rising amid rising yields in the U.S. are growing and long-term rates in Canada .

Yen demonstrates mixed against the dollar, which has been associated with the decision the Bank of Japan to refrain from expanding the program of monetary stimulus . We also add that the Bank of Japan left unchanged targets expansion of the monetary base in the range of 60 trillion yen to 70 trillion yen ( $ 671 billion ) a year and confirmed forecast that core inflation in the 2015 fiscal year , which begins in April , will be on level of 1.9%. Fewer economists expect that the Central Bank will go to expand stimulus measures in 2014, as inflation accelerating. The dollar index fell , retreating from a two-week high on speculation that the Fed meeting on January 28-29, reduce the purchase of assets by $ 10 billion to $ 65 billion a month, and will continue to minimize the QE at the same pace in future meetings .

EUR / USD: during the European session, the pair fell to $ 1.3533 , but then returned to session highs

GBP / USD: during the European session, the pair rose to $ 1.6564

USD / JPY: during the European session, the pair rose to Y104.75 from Y103.95, and then decreased slightly

At 15:00 GMT held publication of the report of the Bank of Canada's monetary policy for the 1st quarter , and the decision will be announced on the Bank of Canada on the basic interest rate. Also during this time will cover the Bank of Canada statement . At 16:15 GMT will be a press conference by the Bank of Canada . At 21:30 GMT New Zealand will index of business activity in the manufacturing sector of Business NZ in December.

EUR/USD

Offers $1.3650, $1.3620/25, $1.3600/05, $1.35805, $1.3575

Bids $1.3535, $1.3517, $1.3510/00, $1.3495, $1.3480

GBP/USD

Offers $1.6690/700, $1.6650, $1.6615/20, $1.6605, $1.6580, $1.6553

Bids $1.6514, $1.6503-491, $1.6452, $1.6400, $1.6400/395

AUD/USD

Offers $0.8940/50, $0.8920, $0.8900, $0.8890, $0.8888

Bids $0.8845/40, $0.8800, $0.8757, $0.8750

EUR/GBP

Offers stg0.8320, stg0.8300, stg0.8280/85, stg0.8255/65

Bids stg0.8180, stg0.8165/60, stg0.8150

EUR/JPY

Offers Y142.40/50, Y141.95/00, Y141.77/86, Y141.65

Bids Y141.15/10, Y141.00, Y140.80, Y140.50

USD/JPY

Offers Y105.25/30, Y105.15, Y105.00, Y104.80, Y104.75

Bids Y104.20, Y103.85/80, Y103.50, Y103.20, Y103.00

European stocks were little changed as a rally in ASML Holding NV offset a decline in ABB Ltd. U.S. stock futures were also little changed, while Asian shares rose.

The Stoxx Europe 600 Index retreated 0.1 percent to 335.37 at 11:23 a.m. in London. The benchmark gauge has gained 2.2 percent so far this year as mining companies rallied and the World Bank raised its forecast for global growth.

U.K. unemployment, as measured by International Labour Organization methods, fell to 7.1 percent in the three months through November from 7.4 percent in the previous quarter, the Office for National Statistics said. The median forecast of economists was for a 7.3 percent drop.

The Bank of England’s Monetary Policy Committee “saw no immediate need to raise bank rate even if the 7 percent unemployment threshold were to be reached in the near future,” minutes from its Jan. 8-9 meeting showed today. Policy makers said cost pressures remain “subdued” and headwinds to growth “would persist for some time.”

ASML rallied 6.8 percent to 67.40 euros after saying it will increase its 2013 dividend by 15 percent. Europe’s largest semiconductor-equipment supplier will pay 61 euro cents a share, up from 53 euro cents a year earlier.

Rautaruukki rallied 29 percent to 8.87 euros after SSAB offered to buy the Finnish steelmaker in a stock swap worth 10.1 billion kronor ($1.56 billion). SSAB surged 12 percent to 54.10 kronor. For each Rautaruukki share, shareholders will get 0.4752 newly issued SSAB class A shares and 1.2131 new class B shares. The offer represents a premium for Rautaruukki shareholders of 20 percent, based on the closing prices of the company’s and SSAB’s shares on Jan. 21.

Sage Group Plc climbed 4.7 percent to 432.3 pence after the software-publishing company said it expects to meet its target of 6 percent growth in so-called organic revenue in 2015. “Our performance in the first quarter is in line with our expectations, with good growth maintained across all regions,” Chief Executive Officer Guy Berruyer said in a statement.

ABB dropped 4.4 percent to 23.13 Swiss francs after saying it will book $260 million in charges from “operational issues” at its Power Systems division and delays to offshore wind projects. “This means we will not be able to deliver our profitability target for the division in the quarter,” Chief Executive Officer Ulrich Spiesshofer said in a statement.

FTSE 100 6,827.2 -7.06 -0.10%

CAC 40 4,313.3 -10.57 -0.24%

DAX 9,699.63 -30.49 -0.31%

USD/JPY Y104.05, Y104.15, Y105.00(VL), Y105.50, Y105.75, Y106.00

EUR/USD $1.3500, $1.3520, $1.3550, $1.3590, $1.3600, $1.3625, $1.3640, $1.3650

GBP/USD $1.6450

EUR/GBP Stg0.8200

USD/CHF Chf0.9100, Chf0.9150

AUD/USD $0.8800, $0.8825, $0.8900, $0.9000

AUD/JPY Y90.95, Y91.50, Y92.25, Y93.00

USD/CAD C$1.0940, C$1.1025

Asian stocks rose, with the regional benchmark index heading for its second day of gains, as the Bank of Japan pledged to maintain economic stimulus and the International Monetary Fund raised its global growth forecast.

Nikkei 225 15,820.96 +25.00 +0.16%

S&P/ASX 200 5,319.77 -11.70 -0.22%

Shanghai Composite 2,051.75 +43.44 +2.16%

Tokyo Steel Manufacturing Co. jumped 5 percent after returning to profit.

TDK Corp. advanced 6.3 percent after Nomura Holdings Inc. raised its price target on shares of the electronic-component maker.

Newcrest Mining Ltd., Australia’s largest gold producer, slipped 3.1 percent as the bullion’s price traded near a two-week low.

MGM China Holdings Ltd. slumped 7.3 percent, leading declines among Macau casinos in Hong Kong as JPMorgan Chase & Co. cut its rating on the stock.

00:30 Australia CPI, q/q Quarter III +1.2% +0.5% +0.8%

00:30 Australia CPI, y/y Quarter III +2.2% +2.5% +2.7%

03:00 Japan BoJ Interest Rate Decision 0.10% 0.10% 0.10%

03:00 Japan Bank of Japan Monetary Base Target 270 270 270

03:00 Japan BoJ Monetary Policy Statement

04:30 Japan All Industry Activity Index, m/m November -0.2% +0.4% +0.3%

07:30 Japan BOJ Press Conference

The yen weakened versus most major peers, reversing earlier gains, as Japanese shares rose after the Bank of Japan stuck to a pledge to maintain record stimulus. Analysts have been cutting forecasts for additional easing by the BOJ as price gains accelerated more than halfway to its 2 percent goal. The percentage of respondents predicting an expansion of the central bank’s unprecedented stimulus between April and June fell to 33 percent from 37 percent one month ago, the Jan. 10-15 poll showed. Every economist surveyed by Bloomberg News predicted no change in policy today.

Australia’s dollar rallied from near a three-year low after a report showed consumer price gains beat economists’ estimate, tempering bets on further rate cuts. In Australia, the trimmed mean gauge of core consumer prices rose 0.9 percent from the previous quarter, the Bureau of Statistics said in Sydney today, compared with the median forecast of 23 economists for a 0.6 percent gain.

EUR / USD: during the Asian session, the pair rose to $ 1.3580

GBP / USD: during the Asian session, the pair traded in the range of $ 1.6470-90

USD / JPY: during the Asian session, the pair rose to Y104.50

There is another full calendar on Wednesday, although data and events are lighter in the US. There is also likely to be a quiet day ahead in Washington, with lawmakers and government officials likely to be snowed in again, keeping government offices closed. The European calendar gets underway at 0800GMT, when Spanish Prime Minister Mariano Rajoy addresses domestic lawmakers. At the same time, the 2014 World Economic Forum gets underway in Davos, Switzerland, which will lead to a slew of headlines from leading figures over coming days. Back on the Continent, at 1000GMT, Bundesbank Board member Joachim Nagel is scheduled to speak on "Financial and monetary challenges in 2014", in Leipzig, Germany. Also due at 1000GMT are the EMU nation third quarter government debt numbers. at 1500GMT, Portugal's Parliament is set to debate budget amendments.

Gold $1,242.00 +0.20 +0.02%

Oil $94.88 -0.11 -0.12%

Nikkei 225 15,795.96 +154.28 +0.99%

S&P/ASX 200 5,331.46 +36.42 +0.69%

Shanghai Composite 2,008.31 +17.06 +0.86%

FTSE 100 6,834.26 -2.47 -0.04%

CAC 40 4,323.87 +1.01 +0.02%

DAX 9,730.12 +14.22 +0.15%

Dow 16,414.19 -44.37 -0.27%

Nasdaq 4,225.76 +28.18 +0.67%

S&P 500 1,843.79 +5.09 +0.28%

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

EUR/USD $1,3560 +0,07%

GBP/USD $1,6475 +0,30%

USD/CHF Chf0,9100 +0,03%

USD/JPY Y104,28 +0,12%

EUR/JPY Y141,41 +0,18%

GBP/JPY Y171,82 +0,42%

AUD/USD $0,8805 -0,05%

NZD/USD $0,8374 +0,60%

USD/CAD C$1,0965 +0,17%

00:30 Australia CPI, q/q Quarter III +1.2% +0.5%

00:30 Australia CPI, y/y Quarter III +2.2% +2.5%

03:00 Japan BoJ Interest Rate Decision 0.10% 0.10%

03:00 Japan Bank of Japan Monetary Base Target 270 270

03:00 Japan BoJ Monetary Policy Statement

04:30 Japan All Industry Activity Index, m/m November -0.2% +0.4%

07:30 Japan BOJ Press Conference

09:00 Switzerland World Economic Forum Annual Meetings

09:30 United Kingdom Average earnings ex bonuses, 3 m/y November +0.8% +1.0%

09:30 United Kingdom Average Earnings, 3m/y November +0.9% +1.1%

09:30 United Kingdom Bank of England Minutes

09:30 United Kingdom PSNB, bln December 14.8 12.3

09:30 United Kingdom Claimant count December -36.7 -32.3

09:30 United Kingdom Claimant Count Rate December 3.8% 3.7%

09:30 United Kingdom ILO Unemployment Rate November 7.4% 7.3%

10:00 Switzerland Credit Suisse ZEW Survey (Expectations) January 39.4 44.0

15:00 Canada Bank of Canada Rate 1.00% 1.00%

15:00 Canada Bank of Canada Monetary Policy Report

15:00 Canada BOC Rate Statement

16:15 Canada BOC Press Conference

18:30 United Kingdom MPC Member McCafferty Speaks

21:00 New Zealand ANZ Job Advertisements (MoM) December -2.1%

21:30 New Zealand Business NZ PMI December 56.7