Foreign exchange market. American session: the euro was supported by the better-than-expected economic data in the Eurozone and the disappointing U.S. trade balance figures

The U.S. dollar plunged against the most major currencies. Market participants remained unimpressed by released U.S. trade balance figures. The U.S. trade deficit decreased to $40.38 billion in March from $41.87 billion in February. February’s figure was revised down from $42.30 billion. Analysts had expected the decline of trade deficit to $40.30 billion.

The euro traded higher against the U.S. dollar. The European currency was supported by the better-than-expected economic data in the Eurozone and the disappointing U.S. trade balance figures. 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 remained near five-year highs. The better-than-expected U.K. services PMI still supports 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 Canadian dollar increased against the U.S. dollar despite the weaker-than-expected Canadian economic data. The Canadian trade surplus decreased to C$0.08 billion in March from C$0.85 billion in February. February’s figure was revised up from a surplus of C$0.29 billion. Analysts had expected the trade surplus of C$0.40 billion.

The Ivey PMI declined to 54.1 in April from 55.2 in March. Analysts had expected a decline to 54.0.

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. The target for inflation is 2%–3% in the next two years.

Australia’s trade balance surplus dropped to A$713 million in March from A$ 1.26 billion in February. Analysts forecasted a decline to A$1.04 billion.

The New Zealand dollar increased against the most major currencies. New Zealand’s dollar was supported by expectations that the unemployment rate in New Zealand will drop to 5.8% in the first quarter from 6.0% in the previous quarter. The unemployment rate will be released later in the day.

The Japanese yen increased against the U.S. dollar due to demand for the safe-haven yen. Japan’s markets were closed today for a public holiday.