Foreign exchange market. Asian session: the Japanese yen increased against the U.S. dollar, supported by the better-than-expected economic data out of Japan, but retreats after Kuroda's speech

Economic calendar (GMT0):

01:30    Australia       New Motor Vehicle Sales (MoM)                April      -0.3%                   0%

01:30    Australia       New Motor Vehicle Sales (YoY)                 April      -2.8%                   -1.9%

04:25    Japan           BOJ Governor Haruhiko Kuroda Speaks                                                            

05:00    Japan           Consumer Confidence                             April       37.5      38.3         37.0

05:30    France          GDP, q/q (Preliminary)                          Quarter I +0.2%   +0.4%     +0.0%

05:30    France          GDP, Y/Y (Preliminary)                          Quarter I +0.8%                  +0.8%

06:00    Germany      GDP (QoQ) (Preliminary)                       Quarter I  +0.4%   +0.7%     +0.8%

06:00    Germany      GDP (YoY) (Preliminary)                        Quarter I  +1.3%                  +2.3%

07:15    Switzerland   Producer & Import Prices, m/m               April        0.0%    +0.3%      -0.3%

07:15    Switzerland   Producer & Import Prices, y/y                 April       -0.7%                   -1.2%

08:00    Eurozone      ECB Monthly Report                               May

09:00    Eurozone      Harmonized CPI                                      April       +0.9%                  +0.2%

09:00    Eurozone      Harmonized CPI, Y/Y (Finally)                  April        +0.7%   +0.7%     +0.7%

09:00    Eurozone      Harmonized CPI ex EFAT, Y/Y                 April        +0.7%   +0.7%     +1.0%

09:00    Eurozone      GDP (QoQ) (Preliminary)                       Quarter I    -0.2%   +0.4%     +0.2%

09:00    Eurozone      GDP (YoY) (Finally)                                Quarter I  +0.4%                  +0.9%

The U.S. dollar traded lower against the most major currencies. Market participants are awaiting the release of the U.S. consumer price index and the speech of the Fed Chair Janet Yellen.

The New Zealand dollar traded higher against the U.S. dollar despite disappointing manufacturing data from New Zealand. The Business New Zealand Manufacturing Index dropped to 55.2 in April, from 58.0 in March. March’s figure was revised down from 58.4.

New Zealand's Treasury released its annual budget. The government will reach a surplus in the 2105 financial year. The surplus should be NZ$372 million. The figure was revised up from NZ$86 million. Market participants were unimpressed by this release.

The Australian dollar traded higher against the U.S. dollar, supported by the new motor vehicle sales in Australia. New motor vehicle sales in Australia were flat in April, after a 0.3% decrease in March. Australia’s year-on-year new motor vehicle sales declined 1.9% in April, after a 2.8% fall in March.

The Japanese yen increased against the U.S. dollar, supported by the better-than-expected economic data out of Japan, but lost its gains after the Bank of Japan Governor Haruhiko Kuroda's speech at the Annual Tokyo Conference. On a yearly basis, Japan's gross domestic product climbed (preliminary) 5.9% in the first quarter of 2014, from a 0.7% rise in the fourth quarter of 2013. Analysts had expected a 4.2% increase. On a quarterly basis, Japan's gross domestic product rose (preliminary) 1.5% in the first quarter of 2014, from a 0.2% increase in the fourth quarter of 2013. Analysts had forecasted a 1.0% increase.

The Japanese consumer confidence index increased 37.0 in April, from 37.5 in March. Analysts had expected 36.7.

The Bank of Japan Governor Haruhiko Kuroda said at the Annual Tokyo Conference that the economy is on track to meet the 2% inflation target of the central bank. He added the Bank of Japan will continue its Quantitative and Qualitative Easing to achieve its 2% inflation target within 2 years.

EUR/USD: the currency pair traded mixed

GBP/USD: the currency pair traded mixed

USD/JPY: the currency pair traded mixed

The most important news that are expected (GMT0):

12:30    Canada    Manufacturing Shipments (MoM)                   March   +1.4%  +0.2%  

12:30    U.S.         Initial Jobless Claims                                       May       319        321        

12:30    U.S.         NY Fed Empire State manufacturing index     May       1.3         7.2         

12:30    U.S.         CPI, m/m                                                       April      +0.2%  +0.3%  

12:30    U.S.         CPI, Y/Y                                                         April      +1.5%                 

12:30    U.S.         CPI excluding food and energy, m/m             April      +0.2%  +0.2%  

12:30    U.S.         CPI excluding food and energy, Y/Y               April      +1.7%                 

13:00    U.S.         Total Net TIC Flows                                        March     167.7                   

13:00    U.S.          Net Long-term TIC Flows                              March     85.7     47.3      

13:15    U.S.          Industrial Production (MoM)                          April      +0.7%  +0.4%  

13:15    U.S.          Capacity Utilization                                        April      79.2%   79.2%   

14:00    U.S.          Mortgage Delinquencies                               Quarter I 6.41%                 

14:00    U.S.          Philadelphia Fed Manufacturing Survey           May       16.6      13.9      

14:00    U.S.          NAHB Housing Market Index                           May       47          49          

16:30    Canada     BOC Deputy Governor Lawrence Schembri Speaks                                                     

23:00    U.S.          Fed Chairman Janet Yellen Speaks