Economic calendar (GMT0):

01:30    Australia                   Trade Balance                                 April      0.90       0.53       -0.12

01:45    China                       HSBC Services PMI                          May       51.4                      50.7

06:00    Germany                  Factory Orders s.a. (MoM)              April        -2.8%   +1.3%   +3.1%

06:00    Germany                  Factory Orders n.s.a. (YoY)            April      +1.5%                 +6.3%

07:00    United Kingdom        Halifax house price index                May         -0.2%   +0.4% +3.9%

07:00    United Kingdom        Halifax house price index 3m Y/Y    May       +8.5%                +8.7%

09:00    G7                            G7 Meetings                                                  

09:00    Eurozone                 Retail Sales (MoM)                           April      +0.3%  +0.1%   +0.4%

09:00    Eurozone                 Retail Sales (YoY)                            April      +0.9%  +1.3%   +2.4%

The U.S. dollar traded slightly lower against the most major currencies due to the weak economic data in the U.S. According to the U.S. ADP employment report, private sector employment increased by 179,000 jobs for May, missing expectations for a gain by 217,000 jobs. April's figure was revised down to an increase of 215,000 from a rise of 220,000.

The U.S. trade deficit increased 6.9% to $47.2 billion in April, from a deficit of 44.18 in March. That was the largest figure since April 2012. March’s figure was revised down to a deficit of $44.18 billion from -40.40 billion U.S. dollar.

The New Zealand dollar traded higher against the U.S dollar recovering a part of its losses. A decline in dairy prices had a negative impact on the kiwi. No economic data was published in New Zealand.

The Australian dollar traded mixed against the U.S. dollar after the release of weak economic data in Australia and China. The Australian trade deficit was A$122 million in April, after a surplus of A$902 million in March. March’s figure was revised up from a surplus of A$731 million. Analysts had expected an A$300 million surplus. Exports declined 1.5% caused by lower commodity prices.

The HSBC services purchase managers’ index for China sank to 50.7 in May from 51.4 in April.

The Japanese yen traded higher against the U.S. dollar ahead the European Central Bank’s interest rate decision. No economic data was released in Japan.

EUR/USD: the currency pair traded mixed

GBP/USD: the currency pair traded mixed

USD/JPY: the currency pair declined to Y102.45

The most important news that are expected (GMT0):

11:00    United Kingdom  BoE Interest Rate Decision                              0.50%   0.50%   

11:00    United Kingdom  Asset Purchase Facility                                     375        375        

11:00    United Kingdom  MPC Rate Statement                                                 

11:45    Eurozone            ECB Interest Rate Decision                              0.25%   0.10%   

12:30    Eurozone            ECB Press Conference                                               

12:30    Canada               Building Permits (MoM)                        April      -3.0%   +1.4%  

12:30    U.S.                    Initial Jobless Claims                             May       300        314        

14:00    Canada               Ivey Purchasing Managers Index         May       54.1      58.6      

17:30    U.S.                    FOMC Member Narayana Kocherlakota