The dollar weakened against most major currencies after the release of US GDP data. The US economy is moderately decreased at the beginning of this year, as the harsh weather conditions and a stronger dollar eroded demand for American goods. It became known from the revised data submitted by the Ministry of Commerce.

According to the report, the seasonally adjusted gross domestic product fell by 0.7% in the first quarter. Earlier, it was assumed that the economy grew by 0.2% from January to March. Analysts had expected GDP to decline by 0.1%. The Ministry of Commerce said that it was the third quarterly decline since mid-2009.

The latter decrease was due to the release of new data that indicated a substantial trade deficit and the slow pace of restocking by firms than previously estimated. These events add to the already gloomy picture, namely the weakness in consumer spending and business investment decline.

The report also stated that corporate profits after taxes, without inventory valuation and capital consumption adjustments, in the last three months of 2014 increased by 3.1% compared with + 9.2% for the same period last year.

Most economists expect the economy to return momentum by the end of the year. In addition, they note that there are already the first signs of spring have a small rebound. According to the latest forecasts, the GDP will grow by about 2% in the current quarter.

Ministry of Commerce also noted that consumer spending, accounting for more than two-thirds of output, rose in the first quarter by 1.8% against the initial estimate of + 1.9%. It was also much slower than the growth of 4.4% in the fourth quarter. Business investment - reflect the cost of construction, engineering, and research and development - fell by 2.8% (up to the end of 2009). Initially it reported a decline of 3.4%. Meanwhile, exports fell by 7.6% (previously reported -7.2%), while government spending fell by 1.1% (-0.8% initially).

Little support for the euro earlier had data on lending in the euro area. A report published by the ECB showed that the growth rate of monetary aggregate M3 accelerated to 5.3% in April, against + 4.6% in March. Experts expect that this figure will increase by 4.9%. In the period from February to April, the average annual growth rate of M3 was 4.7% compared with 4.2% the previous three months (January to March 2015). Regarding the main components of M3, the growth rate of M1 increased to 10.5% in April from 10.0% in March. The growth rate of short-term deposits other than overnight deposits (M2-M1) amounted to -3.3% in April, as in the previous month. We also learned that the annual growth rate of deposits placed by households increased to 2.9% in April from 2.8% in the previous month, while the annual growth rate of deposits placed by non-financial corporations decreased to 4.3% from 4 6%. Finally, the growth rate of deposits placed by non-monetary financial corporations (except insurance corporations and pension funds) increased to 16.0% in April to 14.6%.

The pound extended losses against the US dollar. The pressure on the British currency continues to provide yesterday's weak GDP data for the UK. Recall that in real terms, GDP increased by 0.3% between the fourth quarter of 2014 and the first quarter of 2015. It is worth emphasizing, unedited figure was compared with the previous estimate of GDP, published April 28. Analysts expect that the economy will expand by 0.4% against growth of 0.6% in the fourth quarter. Compared with the first quarter of 2014 UK GDP (in real terms) increased by 2.4%, also in line with the preliminary data published earlier. However, experts predicted expansion of 2.5% against growth of 3.0% in the fourth quarter. The ONS said that business investment grew by 1.7 percent during the first three months of the year (up from the second quarter of 2014) against the forecast of 1.0 percent and economists decline of 0.9 percent at the end of 2014. But trade was the main "brake" of the economy, subtracting 0.9 percentage points from quarterly GDP growth. Meanwhile, household spending rose 0.5 percent, slightly slowing the pace compared to the end of 2014.

The Thomson Reuters/University of Michigan final consumer sentiment index dropped to 90.7 in May from 95.9 in April, beating expectations for a decline to 89.9, up from the preliminary estimate of 88.6.

"The decline was widespread among all age and income subgroups as well as across all regions of the country," the Surveys of Consumers chief economist at the University of Michigan Richard Curtin.

The current economic conditions index declined to 100.8 in May from 107.0 in April.

The index of consumer expectations plunged to 84.2 from 88.8.

The Institute for Supply Management released its Chicago purchasing managers' index on Friday. The index plunged to 46.3 in May from 52.3 in April, missing expectations for an increase to 53.0.

A reading above the 50 mark indicates expansion, a reading below 50 indicates contraction.

The drop was driven by a decline in new orders. The new orders index fell to 47.5 in May from 55.1 in April.

The production and employment indexes also showed double-digit declined in percentage terms.

The Hellenic Statistical Authority released its final gross domestic product (GDP) data for Greece on Friday. The Greek final GDP declined 0.2% in the first quarter, after a 0.4% drop in the fourth quarter. It was the second consecutive quarterly decline.

On a yearly basis, Greek final GDP rose 0.4% in the first quarter, after a 1.3% increase in the fourth quarter.

Consumer spending was up at an annual rate of 0.9%, investment jumped 23.1%.

Exports decreased at an annual rate of 0.9%, while imports climbed 10.6%.

EUR/USD: $1.0800(E538mn), $1.0940(E446mn), $1.1000(E998mn), $1.1150(E1.8bn)

USD/JPY: Y123.00($859mn), Y124.20($300mn), Y124.50($725mn), Y124.80($400mn)

GBP/USD: $1.5100(Gbp1.1bn)

NZD/USD: $0.7200(NZ$234mn)

The U.S. Commerce Department released gross domestic product (GDP) figures on Friday. The U.S. revised GDP declined 0.7% in the first quarter, missing expectations for a 0.1% fall, down from the previous estimate of a 0.2% rise.

The decline in first quarter was driven by harsh weather and the strong U.S. dollar.

The downward revision was partly driven by an upward revision to imports.

Consumer spending rose by 1.8% in the first quarter, down from the previous estimate of a 1.9% increase.

Business investment declined 2.8% in first quarter, the biggest fall since late 2009.

Exports dropped 7.6% due to a stronger dollar, while imports climbed 5.6%.

The Personal consumer expenditures (PCE) price index declined 2% in the first quarter. The PCE price index excluding food and energy costs rose 0.8%.

The PCE price index is the Fed's preferred gauge for inflation.

Statistics Canada released GDP (gross domestic product) data on Friday. Canada's GDP decreased 0.1% in the first quarter, after a 0.6% gain in the fourth quarter.

It was the first negative reading since the second quarter of 2011.

The fall was driven by declines in many sectors, including mining, oil and gas extraction, construction, wholesale trade and manufacturing.

Household spending increased 0.1% in the first quarter, the slowest rise since the second quarter of 2012. Spending on durable goods dropped -1.4%, spending on semi-durable goods rose 0.3%, while spending on non-durable goods was up 0.7%.

Spending on services gained 0.1%.

Exports of goods and services decreased 0.3%, while Imports of goods and services declined 0.4%.

On a yearly basis, Canada's GDP dropped 0.6% in the first quarter, missing expectations for a 0.3% gain, after a 2.2% rise in the fourth quarter. The fourth quarter's figure was revised down from a 2.4% increase.

The State Secretariat for Economic Affairs (SECO) released its gross domestic product (GDP) data for Switzerland on Friday. Switzerland's GDP decreased 0.2% in the first quarter, missing expectations for a 0.1% fall, after a 0.5% gain in the fourth quarter. It was the fastest pace since the first quarter of 2009.

The fourth quarter's figure was revised down from a 0.6% gain.

The increase was driven by lower exports as the Swiss franc strengthen after the Swiss National Bank (SNB) removed its currency cap.

Exports of goods dropped 6.1% in the first quarter, driven by declines in all sectors.

Imports of goods rose 1.7% in the first quarter, driven by strong vehicle demand.

Household spending climbed to 0.5% in the first quarter, government spending was up 0.1%, equipment and software spending rose 0.5%, while construction spending increased 0.3%.

On a yearly basis, Switzerland's economy grew at 1.1% in the fourth quarter, missing expectations for a 1.5% rise, after a 1.9% increase in the fourth quarter.

The Swiss Economic Institute KOF released its leading indicator for Switzerland on Friday. The KOF leading indicator climbed to 93.1 in May from 89.8 in April, exceeding expectations for a rise to 90.0. It was the highest level since January 2015.

April's figure was revised up from 89.5.

The rise was driven by a recovery of the indicators on Swiss manufacturing activity.

"Within the manufacturing sector, the outlook particularly improved in the metal and the machine building industry, followed by the electrical and the chemical industry," the KOF said.

The KOF added that "a swift recovery of the Swiss economy is thus not to be expected soon, but the likelihood of an upward trend reversal should have increased".

Economic calendar (GMT0):

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

01:00 Australia HIA New Home Sales, m/m April 4.4% 0.6%

01:00 New Zealand ANZ Business Confidence April 30.2 15.7

01:30 Australia Private Sector Credit, y/y April 6.2% 6.1%

01:30 Australia Private Sector Credit, m/m April 0.5% 0.5% 0.3%

05:00 Japan Housing Starts, y/y April 0.7% 0% 0.4%

05:45 Switzerland Gross Domestic Product (QoQ) Quarter I 0.5% Revised From 0.6% -0.1% -0.2%

05:45 Switzerland Gross Domestic Product (YoY) Quarter I 1.9% 1.5% 1.1%

06:00 Germany Retail sales, real adjusted April -1.4% Revised From -2.3% 0.8% 1.7%

06:00 Germany Retail sales, real unadjusted, y/y April 4.3% Revised From 3.5% 2.5% 1.0%

06:45 France Consumer spending April -0.7% Revised From -0.6% +0.1%

06:45 France Consumer spending, y/y April 1.7% Revised From 2.1% 2.0%

07:00 Switzerland KOF Leading Indicator May 89.8 Revised From 89.5 90 93.1

08:00 Eurozone Private Loans, Y/Y April 0.1% 0.2% 0.0%

08:00 Eurozone M3 money supply, adjusted y/y April 4.6% 4.9% 5.3%

09:00 G7 G7 Meetings

The U.S. dollar traded mixed against the most major currencies ahead of U.S. economic data. The U.S. revised GDP is expected to fall 0.1% in first quarter, down from the previous estimate of a 0.2% gain.

The Chicago purchasing managers' index is expected to rise to 53.0 in May from 52.3 in April.

The final Reuters/Michigan Consumer Sentiment Index is expected to decline to 89.9 in May from 95.9 in April.

The euro traded higher against the U.S. dollar after mixed economic data from the Eurozone. The European Central Bank (ECB) released its M3 money supply figures on Friday. M3 money supply rose 5.3% in April from last year, exceeding expectations for a 4.9% gain, after a 4.6 % increase in March.

During three months to April, M3 money supply rose to 4.7% from 4.2% in the January to March period.

The lending for house purchase climbed 0.1% in three months to April, after a 0.2% rise a quarter ago.

Loans to the private sector in the Eurozone were flat in April from the last year, missing expectations for a 0.2% gain, after a 0.1% increase in March.

Destatis released its retail sales for Germany on Friday. German adjusted retail sales rose 1.7% in April, beating forecasts of a 0.8% rise, after a 1.4% decline in March. It was the first rise in three months. March's figure was revised up from a 2.3% decrease.

On a yearly basis, German retail sales climbed 1.0% in April, missing expectations for a 2.5% gain, after a 4.3% rise in March. March's figure was revised up from a 3.5% increase.

Sales of non-food products in Germany increased at an annual rate of 2.4% in April, while sales of food products declined by 2.1%.

French statistical office INSEE released its consumer spending data on Friday. French consumer spending increased 0.1% in April, after a 0.7% fall in March. March's figure was revised down from a 0.6% decrease.

Spending on food was up 0.4% in April, spending on automobiles rose 0.1%, spending on household durables fell 0.2%, while spending on energy declined 0.3%.

Spending on manufactured goods increased 0.3% in April.

On a yearly basis, consumer spending in France climbed 2% in April.

The Greek debt crisis still weighed on the euro. The International Monetary Fund (IMF) offered Athens three more weeks to repay IMF loans.

International Monetary Fund Director Christine Lagarde said in an interview to a German newspaper that a Greek exit from the Eurozone is possible.

The British pound traded lower against the U.S. dollar in the absence of any major economic reports from the U.K.

The Canadian dollar traded mixed against the U.S. dollar ahead of Canadian GDP data. Canada's GDP is expected to grow at an annual rate of 0.3% in in the first quarter, after a 2.4% rise in the fourth quarter.

The Swiss franc traded higher against the U.S. dollar after mixed economic data from Switzerland. Switzerland's GDP decreased 0.2% in the first quarter, missing expectations for a 0.1% fall, after a 0.5% gain in the fourth quarter. The fourth quarter's figure was revised down from a 0.6% gain.

On a yearly basis, Switzerland's economy grew at 1.1% in the fourth quarter, missing expectations for a 1.5% rise, after a 1.9% increase in the fourth quarter.

The KOF leading indicator climbed to 93.1 in May from 89.8 in April, exceeding expectations for a rise to 90.0. April's figure was revised up from 89.5.

EUR/USD: the currency pair rose to $1.0990

GBP/USD: the currency pair fell to $1.5235

USD/JPY: the currency pair traded mixed

The most important news that are expected (GMT0):

12:30 Canada GDP QoQ Quarter I 0.6%

12:30 Canada GDP (YoY) Quarter I 2.4% 0.3%

12:30 U.S. PCE price index, q/q (Revised) Quarter I -0.4% -2%

12:30 U.S. PCE price index ex food, energy, q/q (Revised) Quarter I 1.1% 0.9%

12:30 U.S. GDP, q/q (Revised) Quarter I 0.2% -0.1%

13:45 U.S. Chicago Purchasing Managers' Index May 52.3 53.0

14:00 U.S. Reuters/Michigan Consumer Sentiment Index (Finally) May 95.9 89.9

EUR/USD

Offers 1.0980 1.1000 1.1020 1.1050 1.1080 1.1100

Bids 1.0925-30 1.0900 1.0880-85 1.0865 1.0850 1.0825-30 1.0800 1.0785 1.0750

GBP/USD

Offers 1.5325 1.5240-50 1.5360 1.5385 1.5400 1.5420 1.5435 1.5450 1.5470 1.5485

Bids 1.5280 1.5265 1.5250 1.5230 1.5200 1.5185 1.5170 1.5150

EUR/GBP

Offers 0.7185 0.7200 0.7225-30 0.7250

Bids 0.7140 0.7120 0.7100 0.7085 0.7065 0.7050

EUR/JPY

Offers 136.00 136.30 136.50 136.75 137.00

Bids 135.50 135.30 135.00 134.80 134.40 134.00

USD/JPY

Offers 124.00 124.20 124.40 124.50 124.80 125.00

Bids 123.50 123.30 123.00 122.75-80 122.50 122.35 122.20 122.00

AUD/USD

Offers 0.7700 0.7720 0.7760 0.7780 0.7800 0.7820 0.7835

Bids 0.7600 0.7585 0.7565 0.7550

French statistical office INSEE released its consumer spending data on Friday. French consumer spending increased 0.1% in April, after a 0.7% fall in March. March's figure was revised down from a 0.6% decrease.

Spending on food was up 0.4% in April, spending on automobiles rose 0.1%, spending on household durables fell 0.2%, while spending on energy declined 0.3%.

Spending on manufactured goods increased 0.3% in April.

On a yearly basis, consumer spending climbed 2% in April.

Destatis released its retail sales for Germany on Friday. German adjusted retail sales rose 1.7% in April, beating forecasts of a 0.8% rise, after a 1.4% decline in March. It was the first rise in three months.

March's figure was revised up from a 2.3% decrease.

On a yearly basis, German retail sales climbed 1.0% in April, missing expectations for a 2.5% gain, after a 4.3% rise in March. March's figure was revised up from a 3.5% increase.

Sales of non-food products increased at an annual rate of 2.4% in April, while sales of food products declined by 2.1%.

EUR/USD: $1.0800(E538mn), $1.0940(E446mn), $1.1000(E998mn), $1.1150(E1.8bn)

USD/JPY: Y123.00($859mn), Y124.20($300mn), Y124.50($725mn), Y124.80($400mn)

GBP/USD: $1.5100(Gbp1.1bn)

NZD/USD: $0.7200(NZ$234mn)

The European Central Bank (ECB) released its M3 money supply figures on Friday. M3 money supply rose 5.3% in April from last year, exceeding expectations for a 4.9% gain, after a 4.6 % increase in March.

During three months to April, M3 money supply rose to 4.7% from 4.2% in the January to March period.

The lending for house purchase climbed 0.1% in three months to April, after a 0.2% rise a quarter ago.

Loans to the private sector in the Eurozone were flat in April from the last year, missing expectations for a 0.2% gain, after a 0.1% increase in March.

Federal Reserve Bank of Minneapolis President Narayana Kocherlakota reiterated on Thursday that the Fed should not start to raise its interest rate this year.

"Under my current outlook, I continue to believe that it would be a mistake to raise the target range for the fed funds rate in 2015," he noted.

Kocherlakota noted that the job growth has not reached its pre-recession level.

"By some key metrics, the labor market improved more in 2014 than it had in almost 20 years. Yet, by these same metrics, we would need to see at least three more years like 2014 for labor market conditions to return to their 2006 levels," the Federal Reserve Bank of Minneapolis president said.

Kocherlakota is not a voting member of the Federal Open Market Committee this year.

Federal Reserve Bank of San Francisco President John Williams said in Singapore on Thursday that the Fed will likely start to hike its interest rate later this year as the U.S. economy improves. He added that the Fed might raise its interest rate gradually and move them to normal levels over the next few years.

Williams noted that the Fed could hike its interest rate at every monetary policy meeting.

The Federal Reserve Bank of San Francisco president expects the U.S. economy to expand at around to 2.0% this year. Williams also expects that the Fed will hike its interest rate in 2015, 2016 and 2017, and the interest rate will be between 3.5% and 4%.

"If you look at those forecasts back from March you'll see an adjustment over time from where we are now, gradually towards this 3.5 to 4 percent and normal level of Federal Funds rate," he said.

EUR / USD

Resistance levels (open interest**, contracts)

$1.1139 (4484)

$1.1073 (5833)

$1.1025 (3675)

Price at time of writing this review: $1.0959

Support levels (open interest**, contracts):

$1.0884 (7190)

$1.0832 (3425)

$1.0764 (9552)

Comments:

- Overall open interest on the CALL options with the expiration date June, 5 is 113330 contracts, with the maximum number of contracts with strike price $1,1100 (5833);

- Overall open interest on the PUT options with the expiration date June, 5 is 129863 contracts, with the maximum number of contracts with strike price $1,0800 (9552);

- The ratio of PUT/CALL was 1.15 versus 1.18 from the previous trading day according to data from May, 28

GBP/USD

Resistance levels (open interest**, contracts)

$1.5601 (2233)

$1.5502 (1355)

$1.5405 (1858)

Price at time of writing this review: $1.5331

Support levels (open interest**, contracts):

$1.5293 (2259)

$1.5196 (2142)

$1.5098 (1273)

Comments:

- Overall open interest on the CALL options with the expiration date June, 5 is 35305 contracts, with the maximum number of contracts with strike price $1,5700 (2603);

- Overall open interest on the PUT options with the expiration date June, 5 is 52186 contracts, with the maximum number of contracts with strike price $1,5000 (3205);

- The ratio of PUT/CALL was 1.48 versus 1.50 from the previous trading day according to data from May, 28

* - The Chicago Mercantile Exchange bulletin (CME) is used for the calculation.

** - Open interest takes into account the total number of option contracts that are open at the moment.

(pare/closed(GMT +3)/change, %)

EUR/USD $1,0957 +0,53%

GBP/USD $1,5315 -0,24%

USD/CHF Chf0,9431 -0,73%

USD/JPY Y123,44 -0,21%

EUR/JPY Y135,80 +0,71%

GBP/JPY Y189,81 -0,04%

AUD/USD $0,7651 -1,05%

NZD/USD $0,7166 -1,38%

USD/CAD C$1,2424 -0,23%

(time / country / index / period / previous value / forecast)

01:00 Australia HIA New Home Sales, m/m April 4.4%

01:00 New Zealand ANZ Business Confidence April 30.2

01:30 Australia Private Sector Credit, y/y April 6.2%

01:30 Australia Private Sector Credit, m/m April 0.5% 0.5%

05:00 Japan Housing Starts, y/y April 0.7% 0%

05:45 Switzerland Gross Domestic Product (QoQ) Quarter I 0.6% -0.1%

05:45 Switzerland Gross Domestic Product (YoY) Quarter I 1.9% 1.5%

06:00 United Kingdom Nationwide house price index, y/y May 5.2% 4.7%

06:00 United Kingdom Nationwide house price index May 1.0% 0.3%

06:00 Germany Retail sales, real adjusted April -2.3% 0.8%

06:00 Germany Retail sales, real unadjusted, y/y April 3.5% 2.5%

06:45 France Consumer spending April -0.6%

06:45 France Consumer spending, y/y April 2.1%

07:00 Switzerland KOF Leading Indicator May 89.5 90

08:00 Eurozone Private Loans, Y/Y April 0.1% 0.2%

08:00 Eurozone M3 money supply, adjusted y/y March 4.6% 4.9%

09:00 G7 G7 Meetings

12:30 Canada GDP QoQ Quarter I 0.6%

12:30 Canada GDP (YoY) Quarter I 2.4% 0.3%

12:30 U.S. PCE price index, q/q (Revised) Quarter I -0.4% -2%

12:30 U.S. PCE price index ex food, energy, q/q (Revised) Quarter I 1.1% 0.9%

12:30 U.S. GDP, q/q (Revised) Quarter I 0.2% -0.1%

13:45 U.S. Chicago Purchasing Managers' Index May 52.3 53.0

14:00 U.S. Reuters/Michigan Consumer Sentiment Index (Finally) May 95.9 89.9