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Economic calendar (GMT0):
(Time/ Region/ Event/ Period/ Previous/ Forecast/ Actual)
01:30 Australia RBA Bulletin
04:30 Switzerland SNB Financial Stability Report
06:00 Switzerland Trade Balance May 2.66 Revised From 2.85 3.43
07:30 Switzerland SNB Interest Rate Decision -0.75% -0.75% -0.75%
07:30 Switzerland SNB Monetary Policy Assessment
07:30 Switzerland SNB Press Conference
08:30 United Kingdom Retail Sales (MoM) May 0.9% Revised From 1.2% 0.0% 0.2%
08:30 United Kingdom Retail Sales (YoY) May 4.6% Revised From 4.7% 4.8% 4.6%
09:00 Eurozone Eurogroup Meetings
The U.S. dollar traded lower against the most major currencies ahead of the U.S. economic data. The U.S. consumer price inflation is expected to rise to 0.0% in May from -0.2% in April.
The U.S. consumer price index excluding food and energy is expected to remain unchanged at 1.8% in May.
The number of initial jobless claims in the U.S. is expected to decline by 4,000 to 275,000.
The Philadelphia Federal Reserve Bank' manufacturing index is expected to rise to 8.0 in June from 6.7 in May.
Yesterday's results of the Fed's monetary policy meeting weighed on the greenback. The Fed kept its monetary policy unchanged. Economic growth forecast for 2015 was downgraded, while forecasts for 2016 and 2017 were upgraded. There were no signals on the timing when the central bank starts raising its interest rate.
The euro traded higher against the U.S. dollar in the absence of any major economic data from the Eurozone.
Concerns over the Greek debt problem still weighed on the euro. The next round of the debt talks is scheduled to at the finance ministers' meeting today in Luxembourg. Greek Finance Minister Yanis Varoufakis said that Athens will not provide a new reform proposal. It is unlikely that a deal will be reached today.
The Bank of Greece said in its annual report on Wednesday that failure to reach a deal with creditors could lead to the exit from the Eurozone and to crisis in Greece.
The British pound traded higher against the U.S. dollar after the release of the retail sales data from the U.K. Retail sales in the U.K. increased 0.2% in May, exceeding expectations for a flat reading, after a 0.9% gain in April. April's figure was revised down from a 1.2% rise.
The slower growth was driven by lower sales of clothing, which dropped by 1.6% in May. It was the biggest decline since September 2014
Food sales rose 0.6% in May, the biggest rise since December 2014.
On a yearly basis, retail sales in the U.K. climbed 4.6% in May, missing forecasts of 4.8% increase, after a 4.6% rise in April. April's figure was revised down from a 4.2% gain.
The Swiss franc traded higher against the U.S. dollar after the Swiss National Bank's (SNB) interest rate decision. The central bank kept the rates on sight deposits at minus 0.75% and said that the bank will remain active in the forex market as the Swiss franc is significantly overvalued and effects inflation and economic growth.
The SNB forecasts inflation to be -1.2% in the third quarter of 2015.
Inflation for 2015 was upgraded to -1.0% from the previous forecast of -1.1%. The SNB expects inflation to be -0.4% in 2016, up from the previous forecast -0.5%, and 0.3% in 2017, down from the previous forecast of 0.4%.
The central bank expects the Swiss economy to return to positive growth in the second half of 2015.
The SNB Chairman Thomas Jordan said on Thursday that negative interest rates in Switzerland will help to lower the value of the Swiss franc. He added that the Swiss currency remained overvalued.
Jordan pointed out that the Swiss central bank will remain active in the foreign exchange market if needed.
EUR/USD: the currency pair increased to $1.1420
GBP/USD: the currency pair rose to $1.5929
USD/JPY: the currency pair fell to Y122.54
The most important news that are expected (GMT0):
12:30 U.S. Initial Jobless Claims June 279 275
12:30 U.S. Current account, bln Quarter I -113.5 -117
12:30 U.S. CPI, m/m May 0.1% 0.5%
12:30 U.S. CPI, Y/Y May -0.2% 0.0%
12:30 U.S. CPI excluding food and energy, m/m May 0.3% 0.2%
12:30 U.S. CPI excluding food and energy, Y/Y May 1.8% 1.8%
14:00 U.S. Philadelphia Fed Manufacturing Survey June 6.7 8.0
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