Foreign exchange market. European session: the euro hits 7-week highs against the U.S. dollar

Economic calendar (GMT0):

01:30    Australia               Trade Balance                                                             March   1.26      1.04       0.73

04:30    Australia               Announcement of the RBA decision on the discount rate        2.50%   2.50%    2.50%

04:30    Australia               RBA Rate Statement                                                  

07:48    France                 Services PMI (Finally)                                                    April      50.3      50.3       50.4

07:53    Germany              Services PMI (Finally)                                                    April      52.0      52.0       54.7

07:58    Eurozone             Services PMI (Finally)                                                    April      53.1      53.1       53.1

08:30    United Kingdom    Purchasing Manager Index Services                             April      57.6      57.9       58.7

09:00    Eurozone             Retail Sales (MoM)                                                       March   +0.4%    0.0%     +0.3%

09:00    Eurozone             Retail Sales (YoY)                                                        March   +0.8%  +0.9%    +0.9%

09:00    Eurozone             ECOFIN Meetings

09:30    Australia               Annual Budget Release                                                2014                                     

The U.S. dollar plunged against the most major currencies. Market participants are awaiting the release of the U.S. trade balance figures later in the day.

The euro hits 7-week highs against the U.S. dollar. The European currency was supported by the better-than-expected economic data. Eurozone’s month-on-month retail sales increased to 0.3% in March from 0.1% in February. February’s figure was revised down to 0.1% from 0.4%. Analysts had forecasted a rise of 0.2%.

The number of unemployed people in Spain declined by 111,600 in April from a 16,600 decrease in March. Analysts had expected a fall of 49,100.

Spain's services purchasing managers' index rallied to a six-year high of 56.5 in April from 54.0 in March. Analysts had expected an increase to 54.4 in April.

The British pound hits five-year highs. The better-than-expected U.K. services PMI had supported the British currency. The U.K. services PMI climbed to a four-month high of 58.7 in April from 57.6 in March. Analysts had expected an increase to 57.9. Investors expect the Bank of England could hike the interest rates ahead of other central banks.

The Australian dollar hits 2-week highs against the U.S. dollar. The Reserve Bank of Australia (RBA) left the cash rate at a record low of 2.5%. Analysts expected this decision. The Reserve Bank of Australia Governor Glenn Stevens said the Australian dollar remains high by historical standards, but there has been improvement in the labour market.

EUR/USD: the currency pair climbed to $1.3944

GBP/USD: the currency pair increased to $1.6981

USD/JPY: the currency pair declined to Y101.69

AUD/USD: the currency pair was up to $0.9351

The most important news that are expected (GMT0):

12:30    Canada                  Trade balance, billions                March     0.29      0.60     

12:30    U.S.                       International Trade, bln              March    -42.3     -40.1    

14:00    Canada                  Ivey Purchasing Managers Index April       55.2      57.3     

21:30    U.S.                       FOMC Member Jeremy Stein Speaks                                                 

22:45    New Zealand          Employment Change, q/q           Quarter I +1.1%  +0.7% 

22:45    New Zealand          Unemployment Rate                   Quarter I   6.0%    5.8%    

23:50    Japan                    Monetary Policy Meeting Minutes