Foreign exchange market. American session: the euro traded dropped against the U.S. dollar due to the worse-than-expected German CPI

The euro traded dropped against the U.S. dollar due to the worse-than-expected German CPI. German CPI decreased 0.2% in April (March: +0.3%). Analysts forecasted the decline of 0.1%. The euro was also affected by the weak M3 money supply. M3 money supply in the Eurozone increased 1.1% in March (February: 1.3%). Analysts forecasted the rise of 1.4%.

The U.S. dollar traded mixed against the most major currencies. S&P/Case-Shiller home price index climbed at an annual rate of 12.9% in February. Analysts forecasted the rise of 13.0%. The growth in January was 13.2%. The U.S. consumer confidence declined to 82.3 in April. Analyst forecasted 82.9. March’s figure was revised up to 83.9 from 83.2.

The British pound traded mixed against the U.S. dollar. The UK economy is continuing to grow, but the growth was weaker than expected. The GDP was up 0.8% in the first quarter. The annual rate of growth increased to 3.1%. It is fastest rate of annual growth since the fourth quarter of 2007. The projected quarterly rate was 0.9% and an annual growth of 3.2%.

The Japanese yen dropped against the most major currency due to the falling demand for the safe-haven currency. Market participants are waiting for monetary policy statements by the Bank of Japan and the Federal Reserve on Wednesday.

The Canadian dollar climbed against most major currencies ahead the publication of economic data later in the week.

The New Zealand dollar was down against the U.S. dollar and has reached a three-and-a-half week low on Tuesday. But later, New Zealand’s currency recovered a part of its losses. The weaker-than-expected trade surplus and the better-than-expected U.S. pending home sales had a negative impact on the New Zealand’s currency. New Zealand's trade surplus increased to NZ$920 million in March. But the figure in February was revised down to NZ$793 million from NZ$818 million. The projected trade surplus was NZ$937 million.

The Australian dollar declined against the U.S. dollar due to the fall in iron-ore prices and due to the better-than-expected U.S. pending home sales. But later, Australia’s currency recovered a part of its losses.