Foreign exchange market. European session: the euro fell against the U.S. dollar after the release of the disappointing economic data in the Eurozone

Economic calendar (GMT0):

00:00    Japan                  BOJ Governor Haruhiko Kuroda Speaks                                                           

00:30    Australia              Leading Index                           March       0.0%                    -0.5%

01:00    New Zealand       ANZ Business Confidence           May          64.8                      53.5

01:30    Australia              Construction Work Done          Quarter I  -1.1%     -0.3%     +0.3%

05:45    Switzerland          Gross Domestic Product (QoQ) Quarter I  +0.2%   +0.5%    +0.5%

05:45    Switzerland          Gross Domestic Product (YoY)  Quarter I   +1.7%   +2.1%   +2.0%

06:00    Switzerland          UBS Consumption Indicator       April          1.84                      1.72

06:45    France                 Consumer spending                  April         +0.4%   +0.5%     -0.3%

06:45    France                 Consumer spending, y/y           April         -1.2%                    -0.5%

07:55    Germany             Unemployment Change             May           -25        -14            24

07:55    Germany             Unemployment Rate s.a.            May           6.7%     6.7%      6.7%

08:00    Eurozone             M3 money supply, adjusted y/y April         +1.1%  +1.2%    +0.8%

08:00    Eurozone             Private Loans, Y/Y                      April         -2.2%     -2.1%    -1.8%

10:00    United Kingdom   CBI retail sales volume balance    May            30          36           16

The U.S. dollar traded higher against the most major currencies. The U.S. currency was still boosted by the better-than-expected U.S. economic data, published on Tuesday. U.S. durable goods orders rose 0.8% in April, after a 2.9% gain in March. The U.S. consumer confidence index climbed to 83.0 in May, from 81.7 in April.

The euro fell against the U.S. dollar after the release of the disappointing economic data in the Eurozone. The number of people unemployed in Germany surged by 24,000 this month to 2.905 million. That was the largest increase in five years in May. Analysts had expected a decline by 14,000.

The German unemployment rate remained unchanged at 6.7%. This figure was expected by analysts.

Consumer spending in France fell 0.3% in April, after a 0.4% gain in March. Analysts had expected a 0.5 increase. On a yearly basis, consumer spending in France dropped 0.5% in April, after a 1.2% fall in March.

Adjusted M3 money supply in the Eurozone climbed 0.8% in April, after a 1.1% increase in March. Analysts had forecasted a 1.2% gain.

Private loans in the Eurozone declined 1.8% in April (March: -2.2%), beating expectations of a 2.1% fall.

Expectations for further stimulus measures by the European Central Bank continued to weigh on the euro.

The British pound hits 2.5-week lows against the U.S. dollar due to the weaker-than-expected U.K. retail sale volumes. The Confederation of British Industry released the U.K. retail sale volumes on Wednesday. The U.K. retail sale volumes dropped unexpectedly in May. The CBI retail sales volume balance was +16 in May, from +30 in April. It means that retail sales volume climbed in May from last year.

The Swiss franc traded lower against the U.S. dollar. Switzerland's gross domestic product climbed 0.5% in the first quarter (Q4 2013: +0.2%), meeting analysts’ expectations.

On a yearly basis, Switzerland's gross domestic product rose 2.0% in the first quarter (Q4 2013: +1.7%), missing analysts’ expectations of a 2.1% gain.

EUR/USD: the currency pair declined to $1.3604

GBP/USD: the currency pair dropped to $1.6740

USD/JPY: the currency pair traded mixed

The most important news that are expected (GMT0):

23:50   Japan                   Retail sales, y/y                          April      +11.0%  -3.2%