Foreign exchange market. American session: the U.S. dollar traded lower against the most major currencies despite the better-than-expected U.S. producer price index

The U.S. dollar traded lower against the most major currencies despite the better-than-expected U.S. producer price index (PPI). The U.S. producer price index increased 0.6% in April, from a 0.5% rise in March. This is the fastest growth since September 2012. Analysts had expected a 0.2% gain. The year-on-year PPI climbed 2.1% in April, from a 1.4% rise in March.

The U.S. PPI excluding food and energy increased 0.5% in April (March: +0.6%). Analysts had forecasted a 0.2% rise. The year-on-year excluding food and energy gained 1.9% in April, from a 1.4% rise in March.

The euro traded mixed against the U.S. dollar. The industrial production in the Eurozone decreased 0.3% in March, from a 0.3% increase in February. Analysts had expected this figure. The year-on year rate of the industrial production in the Eurozone decreased 0.1% in March, from a 1.7% increase in February.

The euro also remained under pressure due to possible additional stimulus measures from the ECB next month.

The British pound hits 3-week lows against the U.S. dollar after the release of the BoE’s quarterly inflation report and the U.K. labour market figures. The BoE left its GDP outlook at 3.4% for this year that indicates the BoE could delay the interest rate hike. But the Bank of England Governor Mark Carney said that the British economy is moving closer to the point of needing tighter policy.

The U.K. unemployment rate declined to 6.8% in March, from 6.9% in February. The claimant count dropped by 25,100 in April, compared to a decline of 30,400 people in March. Analysts had expected a decrease of 31,200 people.

The Canadian dollar traded higher against the U.S. dollar in the absence of any significant economic data.

The New Zealand dollar traded higher against the U.S. dollar despite the lower-than-expected retail sales data from New Zealand. Retail sales in New Zealand increased 0.7% in the first quarter, from a 1.2% rise in the previous quarter. Analysts had expected a 0.9% increase. Retail sales excluding automobiles and gas stations climbed 0.8% in the first quarter, from a 1% increase in the previous quarter. The fourth quarter figure was revised up from 0.7%. Analysts had forecasted a 0.9% gain.

The Reserve Bank of New Zealand released its Financial Stability Report. House sales declined 11% between October and March since the central bank imposed the restrictions on high loan-to-value ratio lending.

The Australian dollar increased to 1-month highs against the U.S. dollar, supported by the Australian federal budget 2014, but later lost a part of its gains. Australia's Treasury released the federal budget for 2014 – 2015 on Tuesday. Australia's treasurer Joe Hockey said that the government aims to halve its budget deficit over the next year. The Australian government wants to cut tax increases and spending cuts in the budget to achieve its goal. Australia's Treasury forecast a deficit of A$29.8 billion during the twelve months ended June 2015. The real GDP should grow 2.5% in 2014 – 2015.

The Japanese yen increased against the U.S. dollar, supported by the better-than-expected economic data out of Japan and the increasing demand for the safe-haven currency. Corporate Goods Price Index (CGPI) increased 4.1% in April, from a 1.7% rise in March. Machine tool orders (preliminary) rose 48.8% in April, from a 41.8% gain in March.