Foreign exchange market. European session: the British pound traded lower against the U.S. dollar after the weaker-than-expected inflation data from the U.K.

Economic calendar (GMT0):

(Time/ Region/ Event/ Period/ Previous/ Forecast/ Actual)

00:45 New Zealand PPI Output (QoQ) Quarter I -0.1% 0.0% -0.9%

00:45 New Zealand PPI Input (QoQ) Quarter I -0.4% -0.7% -1.1%

02:00 Australia Conference Board Australia Leading Index March 0.5% -0.1%

03:30 Australia RBA Meeting's Minutes

05:00 New Zealand Expected Annual Inflation 2y from now Quarter II 1.8% 1.85%

10:30 United Kingdom Producer Price Index - Input (MoM) April 0.4% Revised From 0.3% 0.8% 0.4%

10:30 United Kingdom Producer Price Index - Input (YoY) April -12.8% Revised From -13.0% -11.5% -11.7%

10:30 United Kingdom Producer Price Index - Output (MoM) April 0.1% Revised From 0.2% 0.2% 0.1%

10:30 United Kingdom Producer Price Index - Output (YoY) April -1.7% -1.6% -1.7%

10:30 United Kingdom Retail Price Index, m/m April 0.2% 0.4% 0.4%

10:30 United Kingdom Retail prices, Y/Y April 0.9% 1.0% 0.9%

10:30 United Kingdom HICP, m/m April 0.2% 0.4% 0.2%

10:30 United Kingdom HICP, Y/Y April 0.0% 0.0% -0.1%

10:30 United Kingdom HICP ex EFAT, Y/Y April 1.0% 0.8%

11:00 Eurozone ZEW Economic Sentiment May 64.8 61.2

11:00 Eurozone Trade balance unadjusted March 20.3 22.3 23.4

11:00 Eurozone Harmonized CPI April 1.1% 0.2%

11:00 Eurozone Harmonized CPI, Y/Y (Finally) April -0.1% 0.0% 0.0%

11:00 Eurozone Harmonized CPI ex EFAT, Y/Y (Finally) April 0.6% 0.6% 0.6%

11:00 Germany ZEW Survey - Economic Sentiment May 53.3 49 41.9

The U.S. dollar higher against the most major currencies ahead of the U.S. housing market data. Housing starts in the U.S. are expected to climb to 1.019 million units in April from 0.926 million units in March.

The number of building permits is expected to rise to 1.065 million units in April from 1.042 million units in March.

The euro traded lower against the U.S. dollar after comments by the European Central Bank (ECB) Executive Board Member Benoit Coeure. He said on Monday that the ECB plans to expand its asset purchases in May and June due to low market liquidity in July and August. He added that a selloff in the European government bond market was a normal correction, but the pace of the selloff was worrisome.

Germany's ZEW economic sentiment index dropped to 41.9 in May from 53.3 in April, missing expectations for a decline to 49.0.

The ZEW President Clemens Fuest said that expectations were adjusted after the weak first quarter figures.

Eurozone's ZEW economic sentiment index fell to 61.1 in May from 64.8 in April.

Eurozone's consumer price index rose 0.2% in April, after a 1.1% increase in March.

On a yearly basis, Eurozone's final consumer price inflation climbed to 0.0% in April from -0.1% in March, in line with expectations.

Eurozone's consumer price inflation excluding food, energy, alcohol and tobacco remained unchanged at an annual rate of 0.6% in April, in line with expectations.

The British pound traded lower against the U.S. dollar after the weaker-than-expected inflation data from the U.K. The Office for National Statistics (ONS) released the consumer price inflation data for the U.K. on Tuesday. The U.K. consumer price index declined to -0.1% in April from 0.0% in March. It was the lowest level since 1960, based on comparable historic estimates.

Analysts had expected the index to remain unchanged.

The fall was driven by a decline in air and sea fares.

The Bank of England Governor (BoE) Mark Carney said last Wednesday that the consumer price inflation could turn negative, but it is expected to rise towards the end of the year.

Consumer price inflation excluding food, energy, alcohol and tobacco prices fell to 0.8% in April from 1.0% the month before.

The Swiss franc traded lower against the U.S. dollar ahead of a speech by the Swiss National Bank Vice President Jean-Pierre Danthine.

The Canadian dollar traded lower against the U.S. dollar ahead of a speech by the Bank of Canada Governor Stephen Poloz.

EUR/USD: the currency pair fell to $1.1159

GBP/USD: the currency pair decreased to $1.5482

USD/JPY: the currency pair rose to Y120.18

The most important news that are expected (GMT0):

14:30 U.S. Building Permits, mln April 1042 1065

14:30 U.S. Housing Starts, mln April 926 1019

17:45 Canada BOC Gov Stephen Poloz Speaks

18:00 Switzerland Gov Board Member Danthine Speaks