The following data
were issued
06:45FranceIndustrial production
(April) 1.4% 0.2% -1.0 (-0.8)%
06:45FranceIndustrial production
(April) Y/Y 3.2% - 1.0%
08:00ItalyIndustrial production
(April) adjusted 0.7% 0.0% -0.2%
08:00ItalyIndustrial production
(April) Y/Y adjusted 2.0% - -2.5%
08:30UKIndustrial production (April)
0.2% 0.0% -0.5%
08:30UKIndustrial production (April)
Y/Y 0.2% - 0.2%
08:30UKManufacturing output (April)
0.1% 0.0% -0.5%
08:30UKManufacturing output (April)
Y/Y 0.1% - 0.6%
The dollar rose to a more than three- month high
against the yen after Federal Reserve Chairman Ben S. Bernanke said
risks to the U.S. economy have diminished, prompting traders to increase bets
on higher interest rates.
The dollar has fallen 11% against the euro and
7.7% versus the yen since September, when the Fed began to lower
borrowing costs from 5.25%. Paulson told CNBC he hasn't ruled out any policy
option to support the dollar, including intervention in the foreign-exchange
market.
The euro shot higher
last week after
Trichet hinted an increase from the current 4.0% was possible next month.
In the UK, the pound was lower despite upbeat economic data, as investors took
profits on the strong gains made yesterday on the back of high producer price
data.
EUR/USD opened around $1.5582. Rally above
$1.5600 could not be sustained, with rate slipping back to test the overnight
low. Stops were hit on the break of $1.5550, wit rate then making a late dip
under $1.5500. Strong bids $1.5480, tech $1.5478, stops $1.5470, offers
$1.5550/60.
GBP/USD opened at $1.9662. Cable eased despite
the better than expectedmanufacturing data, extending lows to $1.9545.
USD/JPY opened in early Europe
around Y106.77 before rising up to Y107.12. Later rate retreated to Y106.80. Dlr-yen
offers Y107.15, Y107.40, tech Y108.39, Y108.62, bids Y106.25.
At 12:30 GMT US trade
balance is scheduled to release. Analysts expect deficit widened in April to $59.60B versus $58.21B
month earlier.
At 12:30 GMT BOC will
announce its rate decision with 25 points cut is expected.