09:00 EMU Trade Balance s.a. -0.6
The euro fluctuated against the dollar before European bank stress-test results amid concern the U.S.’s AAA credit rating is at risk.
The yen headed for a weekly advance versus the euro and the dollar as Italian lawmakers prepared to vote on an austerity package. Standard & Poor’s said there’s a 50 percent chance the U.S. will lose its top credit rating even if Congress reaches agreement on raising the debt ceiling to stave off a default.
S&P may lower the U.S.’s long-term rating by one or more notches into the AA category if it concludes Congress and President Barack Obama’s administration haven’t achieved a credible solution to the rising government debt burden and aren’t likely to achieve one in the near future, the company said in a statement yesterday. Moody’s put the U.S. Aaa credit rating on review for a downgrade on July 13, citing concern officials won’t raise the nation’s $14.3 trillion debt limit in time to prevent a missed payment.
The consumer-price index decreased 0.1 percent after a 0.2 percent gain in May, according to economists. The so-called core measure, which excludes more volatile food and energy costs, increased 0.2 percent, the survey showed.
The euro headed for a weekly decline against the dollar before the European Banking Authority releases the results of the stress tests for regional banks as part of an effort to reassure investors that lenders have sufficient capital. The assessments are the first by the EBA since it was set up earlier this year. The results will be published from 5 p.m. U.K. time.
EUR/USD: the pair shown low in $1.4090 area then restored in $1.4150 area.
GBP/USD: the pair shown low in $1.6080 area then restored in $1.6130 area.
USD/JPY: the pair holds at Y78.90-Y79.30.
In US investors will digest US CPI for June at 12:30 GMT. The same time NY Fed Empire State manufacturing index comes.
At 13:15 GMT US Industrial production will be released.
At 13:55 preliminary Michigan sentiment index is due to come.