The euro exchange rate has fallen today, after the Governing Council of the ECB cut interest rates by 25 bps up to 0.5%. In a subsequent press conference, the head of the Central Bank Mario Draghi hinted that the ECB is ready to deystvovat "if the situation requires further reduce the cost of lending. According to Draghi, the spring has kept the euro zone economy weakness, and reduced rates was aimed at maintaining recovery, which should begin later this year. The labor market situation still leaves much to be desired, and the uncertainty continues to weigh on the recovery process. Commenting on the inflation, Draghi said that its recent decline reflects the drop in energy prices, but also a consequence of large-scale temporal effects associated with changes in annual rates of prices for services in the Easter season. He suggested that during the year the inflation will be subject to volatility. The head of the Central Bank made it clear that the monetary authorities will continue to adhere to the accommodative policy as long as necessary. He also said that the ECB will consult with the other European institutions on initiatives to promote the functioning of the market in respect of asset-backed securities, debts of non-financial corporations.

The yen fell against most major currencies, helped by the ECB's decision to lower interest rates. Also influenced by the dynamics of a report from Markit Economics and HSBC, according to which it was reported that the index, which measures the efficiency of production in China, fell in April, while reaffirming the fragile economic recovery. According to the report, the results of April purchasing managers' index, which measures the level of activity in the manufacturing sector fell to 50.4, down from 51.6 in March. Note that, despite the decline, the figure is above 50, indicating expansion of activity, albeit at a slower pace than in the previous month.

The pound fell against the dollar after the ECB rate cut by 0.25% to 0.5%. We also note that today's report showed that business activity index for the UK construction sector in April rose to 49.4 points. Today's data confirmed the trend of yesterday's index for the industrial sector of the country. Let's see what the data show for the services sector, which will be presented tomorrow. Among the British PMI index only the index for the services sector indicates expansion of the sector. Value of the index in March was at the level of 52.4 points in April, is expected to rise to 52.5 points against 49.4 STANDBY for the construction sector and 49.8 for the industry. As for the PMI index for the countries of continental Europe, their final values ​​went above and preliminary forecasts (with the exception of Germany - at the level of the forecast), although it continued to point to a slowdown in the sector (all figures came out below the level of 50 points).

EUR/USD $1.2950, $1.3000, $1.3070, $1.3090/95, $1.3135, $1.3100, $1.3150, $1.3160, $1.3200

USD/JPY Y97.00, Y98.00, Y98.50, Y99.00

EUR/JPY Y126.00

GBP/USD $1.5380, $1.5540

USD/CHF Chf0.9255, Chf0.9275, Chf0.9305

AUD/USD $1.0250, $1.0290, $1.0360, $1.0365, $1.0375

NZD/USD $0.8415

• cut should support prospects for recovery later in year;
  
• will monitor very closely all incoming information;
  
• labor market conditions remain weak.

EUR/USD dropped to $1.3120 area after ECB cuts on the 25bp the refi rate. ECB also cutting the lending rate by 50bp to equalize the corridor. But later EUR/USD advanced in $1.3200 area.

EUR/USD

Offers $1.3340/50, $1.3315/20, $1.3290/300, $1.3240/60

Bids $1.3140, $1.3130/20, $1.3105/00, $1.30085/80, $1.3055/50, $1.3030/10

GBP/USD

Offers $1.5670/75, $1.5650, $1.5630, $1.5600/10, $1.5580/85

Bids $1.5525/20, $1.5500, $1.5475/65, $1.5450, $1.5430/20

AUD/USD

Offers $1.0345/50, $1.0330, $1.0300, $1.0255/60

Bids $1.0220, $1.0200, $1.0185/80, $1.0155/50, $1.0120/15, $1.0090

USD/JPY

Offers Y98.10/15, Y97.95/00, Y97.80, Y97.50/55

Bids Y96.80, Y96.60/50

EUR/JPY

Offers Y129.00, Y128.40/50

Bids Y127.60/50, Y127.00, Y126.80, Y126.55/50

EUR/GBP

Offers stg0.8580/85, stg0.8545/50, stg0.8530/35, stg0.8500/10

Bids stg0.8450-40, stg0.8425/20

EUR/USD $1.2950, $1.3000, $1.3070, $1.3090/95, $1.3135, $1.3100, $1.3150, $1.3160, $1.3200

USD/JPY Y97.00, Y98.00, Y98.50, Y99.00

EUR/JPY Y126.00

GBP/USD $1.5380, $1.5540

USD/CHF Chf0.9255, Chf0.9275, Chf0.9305

AUD/USD $1.0250, $1.0290, $1.0360, $1.0365, $1.0375

NZD/USD $0.8415

01:30 Australia Building Permits, m/m March +3.1% +1.3% -5.5%

01:30 Australia Building Permits, y/y March +12.8% +13.6% +3.9%

01:30 Australia Import Price Index, q/q Quarter I +0.3% -0.4% 0.0%

01:30 Australia Export Price Index, q/q Quarter I -2.4% +4.5% +2.8%

01:45 China HSBC Manufacturing PMI (Finally) April 50.5 50.6 50.4

The so-called Aussie remained lower before data forecast to show manufacturing contracted in Germany and expanded at a weaker pace in China. Economists in a separate Bloomberg poll estimate the final reading of a factory index in Germany remained at 47.9 in April, below the 50 level and indicating contraction. Markit Economics will release its figures today.

The Purchasing Managers' Index of Chinese manufacturing probably fell to 50.5 in April from 51.6 the previous month, according to the median estimate of economists surveyed by Bloomberg News before HSBC Holdings Plc and Markit Economics release the data today. A government report yesterday showed Chinese manufacturing expanding at a slower pace last month. China is the biggest trading partner for both Australia and New Zealand.

New Zealand's dollar declined for a third day against the yen after Auckland-based Fonterra Cooperative Group Ltd., the world's largest dairy producer, said whole milk powder prices fell for the first time this year. Milk powder for July delivery declined 4.8 percent, according to a trade-weighted index on Fonterra's GlobalDairyTrade website. It was the first fall since Dec. 18. The near-term contract for New Zealand product fell to $6,001 a metric ton from a record $6,283 on April 16.

EUR/USD: during the Asian session the pair fell $ 1.3165

GBP/USD: during the Asian session the pair fell $ 1.5535

USD/JPY: during the Asian session the pair traded in the range of Y97.05-35

(pare/closed(00:00 GMT +02:00)/change, %)

EUR/USD $1,3183 +0,12%

GBP/USD $1,5554 +0,12%

USD/CHF Chf0,9271 -0,25%

USD/JPY Y97,28 -0,09%

EUR/JPY Y128,55 +0,26%

GBP/JPY Y151,31 +0,03%

AUD/USD $1,0278 -0,85%

NZD/USD $0,8503 -0,73%

01:30 Australia Building Permits, m/m March +3.1% +1.3%

01:30 Australia Building Permits, y/y March +12.8% +13.6%

01:30 Australia Import Price Index, q/q Quarter I +0.3% -0.4%

01:30 Australia Export Price Index, q/q Quarter I -2.4% +4.5%

01:45 China HSBC Manufacturing PMI (Finally) April 50.5 50.6

07:30 Switzerland Manufacturing PMI April 48.3 49.2

07:50 France Manufacturing PMI (Finally) April 44.4 44.4

07:55 Germany Manufacturing PMI (Finally) April 47.9 47.9

08:00 Eurozone Manufacturing PMI (Finally) April 46.5 46.5

08:30 United Kingdom PMI Construction April 47.2 48.1

11:45 Eurozone ECB Interest Rate Decision 0.75% 0.50%

12:30 Eurozone ECB Press Conference

12:30 Canada Trade balance, billions March -1.0 -0.7

12:30 U.S. International trade, bln March -43.0 -42.1

12:30 U.S. Initial Jobless Claims April 339 345

12:30 U.S. Nonfarm Productivity, q/q (Preliminary) Quarter I -1.9% +1.8%