European session: The yen strengthened
06:00 Germany CPI (July) final 0.4%
06:00 Germany CPI (July) final Y/Y 2.4%
06:00 Germany HICP (July) final Y/Y 2.6%
09:30 UK BoE quarterly inflation reportThe yen
strengthened as the Federal Reserve’s pledge to keep interest rates at a record low for two more years failed to convince investors global growth will be sustained, boosting demand for haven currencies.The Swiss franc
weakened after the nation’s central bank said it expanded measures to counter the currency’s strength.
The pound dropped after Bank of England Governor Mervyn King said “headwinds” to growth are intensifying.
EUR/USD: the pair shown low in $1.4400 area then receded.
GBP/USD: the pair shown low in $1.6190 area then was slightly restored.
USD/JPY: the pair fell in Y76.50 area. US data starts at at 1400GMT with Wholesale Inventories and then at 1430GMT with the weekly EIA Crude Oil Stocks data. Later on, at 1800GMT, the US Treasury is expected to post a $135.0 billion budget gap in July, smaller than the $165.0 billion gap in July 2010.