Asian session: The euro weakened for a third day against the yen

00:00 Japan Bank holiday -

00:00 China Bank holiday -

01:00 New Zealand NBNZ Business Confidence March 33.8 35.8

01:00 Australia HIA New Home Sales, m/m March +3.0% -9.4%

01:30 Australia Private Sector Credit, m/m March +0.4% +0.3% +0.4%

01:30 Australia Private Sector Credit, y/y March +3.5% +3.2% +3.4%

The euro weakened for a third day against the yen after a government report showed Spain’s economy shrank last quarter amid the European debt crisis.

The 17-nation currency headed for its first monthly decline this year against the dollar before Spanish government ministers hold a press conference today on measures to cut the budget deficit.

The dollar dropped to a two-month low against the yen on speculation the Federal Reserve is ready to add to monetary stimulus if the U.S. recovery falters.

The dollar touched the weakest in eight months against the U.K. pound before a U.S. report today that economists say will show consumer spending increased 0.4 percent in March, half the pace reported for February.

U.S. gross domestic product grew in the first quarter at a 2.2 percent annualized rate, according to Commerce Department figures released last week. That lagged behind the 2.5 percent median estimate in a Bloomberg survey of economists.

Australia’s dollar fell on bets the central bank will reduce interest rates tomorrow.

EUR/USD: during the Asian session the pair holds in a range $1.3230-$1.3260.

GBP/USD: during the Asian session the pair traded with increase.

USD/JPY: during the Asian session the pair fell, updated a week’s low.

European data for Monday starts at 0600GMT with German retail sales, which are expected to rise 1.0% m/m, 1.4% y/y. The EMU flash HICP data for April is due at 0900GMT, which is expected to edge to 2.5% y/y, while Italy flash HICP is also due at the same time. US data starts at 1230GMT with personal income data, which is expected to rise only 0.2% in March, as payrolls growth slowed and the

average workweek shortened to offset a 0.2% rise in hourly earnings. PCE is forecast to rose 0.4%. This is followed at 1345GMT by the MNI Chicago Report, which is forecast to fall to a reading of 61.0 in April after the slight decline in March to 62.2. Finally, at 2130GMT, Dallas Fed President Richard Fisher participates in a Panel discussion at the 2012 Milken Institute Global Conference, in Beverly Hills.