00:00 Canada Bank holiday -

04:30 Japan All Industry Activity Index, m/m March -0.1% 0.0% -0.3%

05:00 Japan Leading Economic Index March 96.6 96.4

05:00 Japan Coincident Index - 96.5 96.7

The yen dropped versus all of its major counterparts amid speculation the Bank of Japan will add to stimulus measures this week to support growth and weaken the nation’s currency. BOJ officials will gather for a two-day meeting starting tomorrow. The central bank expanded its asset-purchase program in February and April. Last week, two bond-buying operations failed to attract the central bank’s target for sell offers.

The yen trimmed its gain from last week against the U.S. dollar before a May 23 report that may show Japan had a trade deficit for a second-straight month. Japan probably had a trade shortfall of 470.8 billion yen ($5.9 billion) last month after a revised deficit of 84.5 billion yen in March, according to the median estimate of economists in a Bloomberg News survey before the data is released May 23.

Demand for the euro was limited ahead of data forecast to show consumer confidence in the 17-nation currency bloc dropped to a four-month low in May amid concern the debt crisis is worsening. An index of consumer sentiment in Europe probably dropped to minus 20.5 this month from minus 19.9 in April, a survey showed before the Brussels-based European Commission reports the figure tomorrow. That would be the lowest level since January.

Spain is scheduled to sell three- and six-month bills tomorrow. The nation revised its 2011 budget shortfall to 8.9 percent of gross domestic product from 8.5 percent previously, the Budget Ministry said in a statement e-mailed on May 18.

The Dollar remained lower after a one-day decline as Asian stocks advanced, curbing demand for the relative safety of the U.S. currency. The Group of Eight nations pushed for Greece, which will be holding its second national vote in six weeks, to stay in the euro area, leaders said at a weekend gathering at U.S. President Barack Obama’s retreat outside Washington.

EUR/USD: the pair gain above $1.2800, however receded later.

GBP/USD: the pair rose to Friday’s high, however receded later.

USD/JPY: the pair has slightly grown.

At 0700GMT, Bank of England MPC Member Adam Posen speaks at the Tokyo Conference on Global Financial Regulatory Issues. Ahead of that, at 0915GMT, Atlanta Fed President Dennis Lockhart speaks at the Tokyo seminar on "limits of monetary policy: what more can central bankers do to stabilize global economy and underpin global growth?".