The Euro rose on the early trading against the Dollar and the Yen after the ECB council member Erkki Liikanen stated inflation expectations are raising and the central bank is in a state of alert. The Euro traded at 1.5481 against the Dollar and at 166.79 against the Yen at 7:00am GMT. Investors are speculating the European Central Bank will increase borrowing costs from a six-year high of 4 percent, in comparison with the Fed's 2 percent and the Bank of Japan's 0.5 percent. 'The monetary policy outlook for the euro makes it look particularly strong against the yen', said Shinichi Hayashi, a foreign-exchange trader in Tokyo at Shinkin Central Bank. 'It's realistic to expect an ECB rate hike next month.' The Euro can even rise to 167.70 Yen, Hayashi added.

The Pound slumped after the National Institute of Economic and Social Research revealed the UK economic growth weakened to a three-year low in the quarter through May. The Pound traded at 1.9543 against the Dollar and at 0.7922 against the Euro at 7:00am GMT. Investors are speculating that UK unemployment claims, revealed later today, rose for a four month in May, illustrating pressures of a rising inflation and a slowing economy; inflation reached the government's upper limit of 3 percent in May, as hiking oil prices boosted consumers prices. Traders believe the Bank of England can increase interest rates in the next month, due to hiking inflation, which can deteriorate even further the economy as the UK is facing a housing market correction.

The Canadian Dollar inverted its negative trend against the American currency, as the Bank of Canada gives prior attention to inflation, in detriment of economic growth. The Canadian currency traded at 1.0237 against the American Dollar at 7:00am GMT. The Canadian Dollar rose against the US currency yesterday for the first time in eight days, as the Bank of Canada unexpectedly kept interest rates on hold at 3 percent. Canadian's decision came in line with concerns expressed by the US, Europe and the UK regarding hiking consumer prices.

Concerning economic data, investors will not pay attention only to UK jobs data; oil inventories will be revealed later today, which are expected to have risen to 0.1 million barrels, up from -4.8 million. To finish, in the Australia jobs data will also be revealed today, which are forecasted to reveal a positive trend, boosting the Aussie against the Dollar.