Asian session: The euro declined
Data:02:00 China Trade Balance (May) 13.10B
The euro declined versus the dollar, headed for the first weekly drop in four, amid dimming prospects the European Central Bank will accelerate interest-rate increases this year.
The common currency fell on concern a resolution to Europe’s sovereign-debt crisis will be delayed after ECB Bank President Jean-Claude Trichet rejected any direct participation in a second bailout for Greece.
The yen climbed on speculation Japanese exporters took advantage of yesterday’s biggest drop this month to buy the currency.
Losses in the euro against the dollar were limited on speculation the U.S. economic recovery will falter, adding to the case for the Federal Reserve to keep interest rates low.Interest-rate futures contracts on the Chicago Board of Trade yesterday showed a 23 percent chance U.S. policy makers will increase the target lending rate by March, down from odds of 33 percent a month earlier.
EUR/USD: the pair decreased in area $1.4480.
GBP/USD: the pair decreased in area $1.6300.
USD/JPY: the pair decreased in area Y80.00.
UK data includes industrial production and PPI at 08:30 GMT.
At 0900GMT, the Bundesbank is due to the publish bi-annual German economic outlook repor.
US data starts at 1230GMT with the May-11 Import/Export Price Index. At 1800GMT, the U.S. Treasury is expected to post a $140.0 billion budget gap in May, compared with the $135.9 billion gap in May 2010.