EU session review: Euro advances; Yen drops

Data released:
06:00     Germany     Current account (March) unadjusted, bln    19.5    -    8.9
06:00     Germany     Trade balance (March) unadjusted, bln    18.9    -    12.1
07:00     UK     Halifax house price index (April)    -1.4%    0.2%    0.1%
07:00     UK     Halifax house price index (April) 3m Y/Y    -3.7%    -2.9%    -2.9%

The euro rose against the dollar, rebounding from its biggest two-day drop since 2008, on speculation the region’s debt crisis won’t keep the European Central Bank from increasing interest rates.
The common currency gained after European Union officials agreed in an unannounced meeting on May 6 to reconsider the terms of the 110 billion-euro ($158 billion) lifeline Greece received last year.
The euro has risen 3% this year. The yen has weakened 4.7%, while the dollar is down 5.1%.
The dollar slipped before U.S. reports this week that may show fewer initial jobless claims and increased retail sales, providing evidence the recovery of the world’s largest economy is maintaining momentum.
The Australian dollar strengthened for a second day before data tomorrow forecast to show China’s imports gained in April. China is the largest importer of Australia’s raw materials.
The pound depreciated after the Confederation of British Industry lowered its economic growth predictions and a report showed house prices unexpectedly fell.

EUR/USD rose to $1.4440 before slipped to the lows below $1.4400.

GBP/USD fell from $1.6410 to $1.6350. Later rate recovered to $1.6370.

USD/JPY rose from Y80.50 to Y80.80.

There is no major data for today.