Asian session: The euro was set for the biggest weekly decline in a month

00:00 Japan Bank holiday -

01:30 Australia RBA Monetary Policy Statement Quarter II

The euro was set for the biggest weekly decline in a month amid concern leadership changes at elections in France and Greece this weekend could derail the region’s austerity efforts. France and Greece are both scheduled to hold elections on May 6, with French voters casting ballots in the final round of the country’s presidential race and Greeks set to decide on a new parliament.  The 17-nation currency was 0.3 percent from an almost two- year low versus the British pound before a private report that may confirm the euro region’s output of services and manufacturing shrank for a third month. A euro-area composite index for services and manufacturing industries was at 47.4 in April, below the 50 level that indicates contraction, according to economist estimates before London-based Markit Economics releases its final reading of the gauge today.

The Dollar Index was poised for a weekly gain before U.S. data forecast to show employment increased last month in the world’s biggest economy. U.S. employers probably added 160,000 jobs last month after a 120,000 increase in March, according to the median estimate of economists before the Labor Department releases its monthly jobs report today.

EUR/USD: during the Asian session the pair holds in a range $1.3140-$1.3160.

GBP/USD: during the Asian session the pair holds in a range $1.6180-$1.6195.

USD/JPY: during the Asian session the pair holds in range Y80.15-Y80.25.

This morning it is the turn of the European services PMIs to dominate the European data calendar. Italy at 0743GMT, then the final figures from France at 0748GMT, Germany at 0753GMT and the main EMU data at 0758GMT. Finally for Europe, at 1145GMT, German Finance Minister Wolfgang Schaeuble delivers a speech at Ruhr University, in Bochum. UK data is mainly second-tier on Friday, starting at 0600GMT with the BDO High Street Sales Tracker. The main afternoon event is at 1230GMT when non-farm payrolls are forecast to rise 165,000 in April after the relatively modest 120,000 rise in March. The unemployment rate is forecast to stay at 8.2%. Hourly earnings are expected to rise 0.2%, while the average workweek is forecast hold steady at 34.5 hours. In Canada, the Ivey Purchasing Managers Index is due at 1400GMT. The, at 1425GMT, San Francisco Fed President John Williams speaks to the California Bankers Association 121st Annual Convention. Late US data sees the 1900GMT release of Treasury STRIPS data.