Foreign exchange market. European session: the U.S. dollar traded lower against the most major currencies ahead of the release of producer price index (PPI) in the U.S.

Economic calendar (GMT0):

06:00    Germany             CPI, m/m (Finally)                               April      -0.2%    -0.2%     -0.3%

06:00    Germany             CPI, y/y (Finally)                                 April      +1.3%   +1.3%    +1.1%

06:00    Japan                  Prelim Machine Tool Orders, y/y         April      +41.8%               +48.8%

06:45    France                 CPI, m/m                                           April      +0.4%   +0.2%      0.0%

06:45    France                 CPI, y/y                                             April      +0.6%                 +0.8%

08:30    United Kingdom   Average earnings ex bonuses, 3 m/y April      +1.4%                  +1.3%

08:30    United Kingdom   Average Earnings, 3m/y                     March     +1.7%   +2.2%  +1.7%

08:30    United Kingdom   Claimant count                                   April      -30.4      -31.2       -25.1

08:30    United Kingdom   Claimant Count Rate                          April        3.4%                    3.3%

08:30    United Kingdom   ILO Unemployment Rate                    March     6.9%      6.8%      6.8%

09:00    Eurozone             Industrial production, (MoM)               March     +0.2%   -0.3%     -0.3%

09:00    Eurozone             Industrial Production (YoY)                 March    +1.7%                  -0.1%

09:00    Switzerland          Credit Suisse ZEW Survey (Expectations) March   7.0                      7.4

09:30    United Kingdom   BOE Inflation Letter                           Quarter II                                         

09:30    United Kingdom   BOE Gov Mark Carney Speaks                                                

The U.S. dollar traded lower against the most major currencies ahead of the release of producer price index (PPI) in the U.S. The U.S. producer price index should increase 0.2% in April, from a 0.5% rise in March. The U.S. producer price index excluding food and energy should climb 0.2% in April, from a 0.6% increase in March.

The euro traded higher against the U.S. dollar. The industrial production in the Eurozone decreased 0.3% in March, from a 0.3% increase in February. Analysts had expected this figure. The year-on year rate of the industrial production in the Eurozone decreased 0.1% in March, from a 1.7% increase in February.

The euro also remained under pressure due to possible additional stimulus measures from the ECB next month.

The British pound hits 3-week lows against the U.S. dollar after the release of the BoE’s quarterly inflation report and the U.K. labour market figures. The BoE left its GDP outlook at 3.4% for this year that indicates the BoE could delay the interest rate hike. But the Bank of England Governor Mark Carney said that the British economy is moving closer to the point of needing tighter policy.

The U.K. unemployment rate declined to 6.8% in March, from 6.9% in February. The claimant count dropped by 25,100 in April, compared to a decline of 30,400 people in March. Analysts had expected a decrease of 31,200 people.

EUR/USD: the currency pair increased to $1.3731

GBP/USD: the currency pair dropped to $1.6756

USD/JPY: the currency pair declined to Y101.71

The most important news that are expected (GMT0):

12:30    U.S.                       PPI, m/m                                           April      +0.5%  +0.2% 

12:30    U.S.                       PPI, y/y                                             April      +1.4%                

12:30    U.S.                       PPI excluding food and energy, m/m April      +0.6%  +0.2% 

12:30    U.S.                       PPI excluding food and energy, Y/Y   April      +1.4%                

14:30    Eurozone               ECB's Jens Weidmann Speaks                                                                  

22:30    New Zealand          Business NZ PMI                                 April      58.4                    

23:50    Japan                    Tertiary Industry Index                      March     -1.0%   +2.5% 

23:50    Japan                    GDP, q/q (Preliminary)                       Quarter I +0.2%  +1.0% 

23:50    Japan                    GDP, y/y                                           Quarter I +2.6%