European session:

The euro advanced against the dollar as a report showed the region’s economic growth accelerated to the fastest pace since the second quarter of 2010, bolstering the case for further central bank interest-rate increases.
The common currency climbed versus all but two its 16 most- traded peers. Gross domestic product in the 17-member euro area rose 0.8 percent from the fourth quarter, powered by forecast- topping expansion in Germany and France.
German gross domestic product jumped 1.5 percent from the previous three months and the French economy grew 1 percent, exceeding economists’ median estimates of 0.9 percent and 0.6 percent, respectively. The European Union raised its forecast for 2011 euro-region inflation to 2.6 percent from 2.2 percent.
“Economic fundamentals in Europe are resilient,” said Kengo Suzuki, manager of the foreign bond department in Tokyo at Mizuho Securities Co. “It supports expectations for a series of interest-rate increases.”
The pound weakened after a report by the Institute for Fiscal Studies said U.K. living standards will fall, spurring bets that monetary policy tightening by the Bank of England will lag behind that of the euro region.
Living standards will decline as inflation outstrips income growth and government spending cuts crimp welfare payments, the report said.

EUR/USD: gained up to $1.4340. before eased back to $1.4280.

USD/JPY: posted session low at Y80.40, before jumped up to Y80.80.

US data starts at 1230GMT, when consumer prices are expected to reflect continued price pressures from food and energy, though to a lesser extent than in at the wholesale level. Overall CPI is forecast to rise 0.4% in April, while core CPI is expected to rise 0.1%. Then, at 1355GMT, the Michigan Sentiment Index is expected to rise slightly to a reading of 70.0 in early-May.