The euro is range-bound ahead of data on consumer prices in the euro zone due at 10:00 GMT. Inflation is likely to show acceleration. The CPI is expected to have risen by 0.3% in December compared to a 0.2% gain in the previous month. Inflation is still well below ECB's 2% target.
The yen stabilized against the U.S. dollar after Chinese stock market rebounded. Yesterday the yen rose by more than 150 points as tensions in the Middle East and weak economic data from China raised demand for this safe-haven currency.
Persistent weakness of China's economy, driven by weaker activity in the manufacturing sector, undermines global commodity demand outlook. This puts pressure on emerging economies, which depend on profits from raw materials. A weaker yuan is also unfavorable for China's trading partners. It suggests that other countries will take steps to lower exchange rates of their currencies too.
EUR/USD: the pair edged down to $1.0827 in Asian trade
USD/JPY: the pair traded within Y119.09-119.69
GBP/USD: the pair rose to $1.4722
The most important news that are expected (GMT0):
(time / country / index / period / previous value / forecast)
08:55 Germany Unemployment Change December -13 -7
08:55 Germany Unemployment Rate s.a. December 6.3% 6.3%
09:30 United Kingdom PMI Construction December 55.3 56
10:00 Eurozone Harmonized CPI, Y/Y (Preliminary) December 0.2% 0.4%
10:00 Eurozone Harmonized CPI ex EFAT, Y/Y (Preliminary) December 0.9% 0.9%
13:30 Canada Industrial Product Price Index, m/m November -0.5%
13:30 Canada Industrial Product Price Index, y/y November -0.4%
20:45 U.S. Total Vehicle Sales, mln December 18.19 18.1
22:30 Australia AIG Services Index December 48.2