Foreign exchange market. European session: the euro traded higher against the U.S. dollar after German Ifo business climate data

Economic calendar (GMT0):

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

03:00 Japan BoJ Interest Rate Decision 0% 0%

03:00 Japan Bank of Japan Monetary Base Target 275 275

03:00 Japan BoJ Monetary Policy Statement

06:00 Germany GDP (YoY) (Finally) Quarter I 1.6% 1.0% 1.1%

06:00 Germany GDP (QoQ) (Finally) Quarter I 0.7% 0.3% 0.3%

06:30 Japan BOJ Press Conference

08:00 Eurozone ECB President Mario Draghi Speaks

08:00 Germany IFO - Business Climate May 108.6 108.3 108.5

08:00 Germany IFO - Current Assessment May 114 Revised From 113.9 113.5 114.3

08:00 Germany IFO - Expectations May 103.4 Revised From 103.5 103.1 103.0

08:30 United Kingdom PSNB, bln April -6.06 Revised From -6.74 -8.1 -6.04

11:00 United Kingdom BOE Gov Mark Carney Speaks

The U.S. dollar mixed against the most major currencies ahead of the U.S. economic data. The U.S. consumer price inflation is expected to remain unchanged at -0.1% in April.

The U.S. consumer price index excluding food and energy is expected to fall to 1.7% in April from 1.8% in March.

Yesterday's mostly weaker-than-expected U.S. economic data weighed on the greenback.

The euro traded higher against the U.S. dollar after German Ifo business climate data. German business confidence index slightly fell to 108.5 in May from 108.6 in April, beating expectations for a decline to 108.3. It was the first decline since October 2014.

"The German economy remains on track," Ifo President Hans-Werner Sinn said.

The European Central Bank president Mario Draghi said in Portugal today that Eurozone's is brighter today than it has been for seven long years".

"Monetary policy is working its way through the economy. Growth is picking up. And inflation expectations have recovered from their trough," he noted.

The Greek debt problem continues to weigh on the euro. Greek Prime Minister Alexis Tsipras, German Chancellor Angela Merkel and French President Francois Hollande met yesterday. The Greek spokesman, Gabriel Sakellaridis, said today that a deal between Greece and its creditors should be reached within the next 10 days.

According to German newspaper Süddeutsche Zeitung, Eurozone officials are considering to extend the current bailout until the end of October. A decision on this matter will be taken at the beginning of next month.

The British pound traded lower against the U.S. dollar after the public sector net borrowing data from the U.K. The public sector net borrowing in the U.K. fell to £6.04 billion in April from £6.06 billion in March, missing expectations for a rise to £8.1 billion. March's figure was revised down from £6.74 billion.

The Canadian dollar traded lower against the U.S. dollar ahead of Canadian economic data. The consumer price index in Canada is expected to decline to 1.0% in April from 1.2% in March.

The core consumer price index in Canada is expected to remain unchanged 2.4% in April.

Canadian retail sales are expected to increase 0.3% in March, after a 1.7% rise in February.

Canadian retail sales excluding automobiles are expected to rise 0.4% in March, after a 2.0% gain in February.

EUR/USD: the currency pair increased to $1.1208

GBP/USD: the currency pair fell to $1.5615

USD/JPY: the currency pair rose to Y121.04

The most important news that are expected (GMT0):

12:30 Canada Retail Sales, m/m March 1.7% 0.3%

12:30 Canada Retail Sales YoY March 2.5%

12:30 Canada Retail Sales ex Autos, m/m March 2.0% 0.4%

12:30 Canada Consumer Price Index m / m April 0.7% 0.1%

12:30 Canada Consumer price index, y/y April 1.2% 1.0%

12:30 Canada Bank of Canada Consumer Price Index Core, y/y April 2.4% 2.4%

12:30 Canada Bank of Canada Consumer Price Index Core, m/m April 0.6%

12:30 U.S. CPI, m/m April 0.2% 0.1%

12:30 U.S. CPI, Y/Y April -0.1% -0.1%

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 1.8% 1.7%

13:30 Eurozone ECB President Mario Draghi Speaks

13:30 United Kingdom BOE Gov Mark Carney Speaks

13:30 Japan BOJ Governor Haruhiko Kuroda Speaks

17:00 U.S. Fed Chairman Janet Yellen Speaks