Foreign exchange market. European session: the euro remained under pressure due to rumours that Germany’s Bundesbank is willing to back additional stimulus measures from the ECB in June

Economic calendar (GMT0):

01:30    Australia                House Price Index (QoQ)  Quarter I     +3.8%  +3.0%   +1.7%

01:30    Australia                House Price Index (YoY)   Quarter I    +9.3%               +10.9%

01:30    Australia                Home Loans                     March       +2.3%    +1.1%    -0.9%

05:30    China                    Retail Sales y/y                  April         +12.2%  +12.2% +11.9%

05:30    China                    Industrial Production y/y     April         +8.8%    +8.9%   +8.7%

05:30    China                    Fixed Asset Investment       April         +17.6%  +17.8% +17.3%

09:00    Eurozone              ZEW Economic Sentiment   May             61.2         63.5       55.2

09:00    Germany               ZEW Economic Sentiment   May             43.2         41.3       33.1

09:30    Australia                Annual Budget Release        2014

The U.S. dollar traded mixed against the most major currencies. Market participants are awaiting the release of U.S. retail sales later in the day. U.S. retail sales should increase 0.5% in April. U.S. retail sales excluding autos should rise 0.6% in April.

The euro hits 1-month lows against the U.S. dollar due to the weaker-than-expected economic data from the Eurozone and Germany. The ZEW Centre for Economic Research released the economic sentiment figures for May. German economic sentiment slid to 33.1 in May from 43.2 in April. Analysts had expected 41.3.

Eurozone’s economic sentiment declined to 55.2 in May from 61.2 in April. Analysts had forecasted 63.5.

The euro also remained under pressure due to rumours that Germany’s Bundesbank is willing to back additional stimulus measures from the ECB next month.

The British pound dropped against the U.S. dollar ahead of tomorrow’s U.K. labour market data and the BOE inflation letter.

EUR/USD: the currency pair decreased to $1.3698

GBP/USD: the currency pair declined to $1.6824

USD/JPY: the currency pair increased to Y102.37

The most important news that are expected (GMT0):

12:30    U.S.                       Retail sales                                           April      +1.2%   +0.5% 

12:30    U.S.                       Retail sales excluding auto                   April      +0.7%   +0.6% 

12:30    U.S.                       Import Price Index                              April      +0.6%   +0.4% 

14:00    U.S.                       Business inventories                            March   +0.4%  +0.4%           

21:00    New Zealand          RBNZ Financial Stability Report             May                                    

21:05    New Zealand          RBNZ Governor Graeme Wheeler Speaks                                                       

22:45    New Zealand          Retail Sales, q/q                                 Quarter I  +1.2%  +0.9% 

22:45    New Zealand          Retail Sales ex Autos, q/q                   Quarter I +0.7%  +0.9%