European session:

The euro declined versus the dollar, headed for the first weekly drop in four, amid prospects the European Central Bank will slow the pace of interest-rate increases this year.
The common currency fell on concern a resolution to Europe’s sovereign-debt crisis will be delayed after ECB President Jean- Claude Trichet rejected any direct participation in a second bailout for Greece. Euribor futures rose, pushing the implied yield on the March 2012 contract down four basis points to 1.93 percent, as traders reduced bets policy makers will boost rates. People expect the ECB to be on hold after raising rates in July.
The euro pared its decline against the dollar as the Bundesbank raised its forecast for German growth to 3.1 percent this year. Gross domestic product will expand 3.1 percent this year and 1.8 percent in 2012, the Frankfurt-based central bank said in its bi-annual economic outlook today. That compares with a February prediction of 2.5 percent growth for this year and a December forecast of 1.5 percent for 2012.
New Zealand’s dollar approached a record high versus the greenback after data showed China’s imports increased in May. The yen climbed against all its main counterparts on speculation Japanese exporters took advantage of yesterday’s biggest drop this month to buy the currency.

US data starts at 1230GMT with the May-11 Import/Export Price Index. At 1800GMT, the U.S. Treasury is expected to post a $140.0 billion budget gap in May, compared with the $135.9 billion gap in May 2010.