European session: the pound fell as the U.K. economy slipped back into recession

Data:
08:30 United Kingdom GDP, q/q  (preliminary) Quarter I -0.3% +0.1% -0.2%
08:30 United Kingdom GDP, y/y  (preliminary) Quarter I +0.5% +0.3% 0.0%
10:00 United Kingdom CBI industrial order books balance April -8 -8 -8

The pound fell  after the U.K. economy unexpectedly slipped back into recession, supporting the case for the Bank of England to extend its asset-purchase program.
The U.K. currency dropped from a six-month high versus the dollar after the Office for National Statistics said gross domestic product contracted 0.2 percent last quarter, after shrinking 0.3% in the previous three months. Economists forecast growth of 0.1%.
Short-sterling futures advanced after the GDP report, indicating investors are cutting bets on higher interest rates.
U.K. policy makers kept their benchmark rate at 0.5% at their April 4-5 meeting. Bank of England officials will consider whether to extend their 325 billion-pound quantitative- easing program when they next meet on May 9-10.

EUR/USD: the pair tested resistance in  $1,3230 area then receded in $1,3200 area.

GBP/USD: the pair decreased below $1,6100, showed low on $1,6081. Later the rate restored in $1,6110 area.

USD/JPY: the pair showed low on Y81,06 then receded in Y81,30 area.  

At 1430GMT, the EIA weekly crude oil stocks data is due.  Later on, at 1630GMT, the FOMC meeting statement is due, followed at 1800GMT by the publication of the current economic projections and then at 1815GMT by a press conference with Federal Reserve Chairman Ben Bernanke.