European session: Sterling dropped against all of its 16 major peers

Data:

06:50 Eurozone ECB President Mario Draghi Speaks -

08:30 United Kingdom Trade in goods April -8.6 -8.5 -10.1

09:00 Eurozone Employment Change Quarter I -0.2% -0.2% -0.2%

09:00 Eurozone Trade Balance s.a. April 4.3 4.2 6.2

Sterling dropped against all of its 16 major peers after Bank of England Governor Mervyn King presented joint steps with the Treasury to increase the flow of credit to U.K. banks and said the case for more stimulus is “growing.” Two-year note yields approached a record low and implied yields on interest- rate futures slid as investors added to bets for lower borrowing costs.

The yen strengthened at least 0.3 percent against all of its 16 most-traded counterparts after the Bank of Japan refrained from expanding monetary stimulus that debases the currency.

The dollar was set for weekly declines versus most major peers before U.S. data that may show production slowed and consumer confidence fell, adding to the case for further easing by the Federal Reserve. The central banks of the world’s biggest economies are preparing for coordinated action to provide liquidity if needed after a general election in Greece this weekend widely seen as a referendum on keeping the nation in the euro, Reuters reported earlier.