Asian session: Australia’s dollar dropped

01:30 Australia Unemployment Rate s.a. (Apr) 4.9% 

01:30 Australia Employment Change s.a. (Apr) -22.1K

The euro rose from a three-week low versus the dollar as optimism growth in Europe is accelerating overshadowed concern the region’s debt crisis will worsen.

The single currency strengthened against 12 of its 16 major counterparts before a report tomorrow forecast to show Europe’s economy grew at a faster pace in the first quarter. 

Australia’s dollar weakened after a government report showed employers unexpectedly cut workers last month.

Australia’s dollar dropped for a second day as investors trimmed bets on central-bank rate increases after employment dropped by the most since 2009.

The number of people employed in Australia declined by 22,100, following a 43,300 gain in March, the statistics bureau said. The jobless rate held at 4.9 percent.

This morning also sees a series of regular reports with the IMF Regional Economic Outlook for Europe at 0730GMT and both the latest ECB Monthly Bulletin and IEA monthly oil market report at 0800GMT. EMU industrial output for March then follows, at 0900GMT. 
UK data sees Industrial Production for March at 0830GMT. Forecasts are for better UK manufacturing data, with Manufacturing output up 0.4% m/m, 2.8% y/y and industrial output up 0.8% m/m, 1.1% y/y. In light of the weak February monthly data, the Q1 GDP numbers entail a rebound in both manufacturing and industrial production in March. However, this data represents old news for policymakers. The April CIPS numbers suggest the pace of growth in the manufacturing sector eased in the second quarter. 
US data starts at 1230GMT with the weekly jobless claims and also retail sales and PPI for April. Initial jobless claims are expected to fall 44,000 to 430,000 in the May 7 week after surging in the previous week on special factors that should be reversed in the current 
week. Retail sales are expected to rise 0.6% in April. Industry auto sales rose slightly in the month from the previous month, while gasoline prices rose further according to AAA. Sales excluding motor vehicles are expected to be up 0.6% as well. The data will include the annual revisions already released. At 1400GMT by business inventories, which are expected to rise 0.9% in March. Factory inventories were already reported up 1.1%. The data will include the annual revisions to the retail sales data.