Economic calendar (GMT0):

07:00    Eurozone       ECB's Jens Weidmann Speaks

The U.S. dollar traded lower against the most major currencies after Friday’s release of the disappointing U.S. consumer sentiment. The preliminary Thomson Reuters/University of Michigan consumer sentiment index dropped to 81.8 in May, from 84.1 in April. Analysts had expected an increase to 84.7.

The New Zealand dollar increased against the U.S. dollar, but later lost a part of its gains. The kiwi was supported by the better-than-expected economic data out of New Zealand. Producer price index input in New Zealand climbed 1% in the first quarter, from a 0.7% decline in the previous quarter. Analysts had expected a 0.4% gain.

Producer price index output in New Zealand increased 0.9% in the first quarter, from a 0.4% decline in the previous quarter. Analysts had forecasted a 0.7% rise.

The Australian dollar traded lower against the U.S. dollar. No economic data was published in Australia.

The Japanese yen rose against the U.S. dollar. The yen was supported by the demand for safe-haven assets and the better-than-expected Japanese core machinery orders. The core machinery orders in Japan increased 19.1% in March, from a 4.6% gain in February. That was the record growth in March. February’s figure was revised up from an 8.8% decrease. Analysts had expected a 6.0% increase. On a yearly basis, the Japanese core machinery orders rose 16.1% in March, from a 10.8% increase in February. Analysts had forecasted a 4.3% gain.

Clashes in Ukraine’s east and anti-China violence in Vietnam increased demand for safe-haven assets.

EUR/USD: the currency pair increased to $1.3717

GBP/USD: the currency pair traded mixed

USD/JPY: the currency pair declined to Y101.40

The most important news that are expected (GMT0):

09:00    Eurozone      Construction Output, m/m          March   +0.1%                 

09:00    Eurozone      Construction Output, y/y            March   +6.7%                 

10:00    Germany      Bundesbank Monthly Report        May