The euro rose against the dollar, recovering from session lows, after data from Automatic Data Processing, Inc (ADP) showed that in May, the level of private sector employment increased by 135 thousand vs. 171 thousand and 113 thousand (revised from 119 thousand) in April. According to ADP, employment in firms with the number of employees from 1 to 49 increased by 58 thousand jobs in May. The average amount of business with 50-499 employees attracted 39 thousand new employees. Large firms and enterprises with 500 employees or more added 39 thousand new jobs. Employment in the service sector increased by 138 million in May, and manufacturing employment fell again, this time for 6 thousand positions.

The obtained data raise concern about the state of the labor market in the United States on the eve of Friday's employment report from the Labor Department.

The pound rose after the UK services PMI showed strong growth. Activity in the UK service sector, which occupies a dominant position in the national economy in May grew at the fastest pace in more than a year. This pickup in activity is likely to continue, as new orders increased most rapidly in three years. These are the results of a monthly survey conducted by Markit and the Chartered Institute of Purchasing & Supply. Increased activity in the services sector - the strongest signal yet that the recovery that began in the 1st quarter, should continue in the 2nd quarter onwards. This makes it highly unlikely the Bank of England to provide additional economic stimulus at the meeting, which will end on Thursday.

Purchasing Managers Index (PMI) for the service sector rose in May to 54.9, its highest level since March 2012, against 52.9 in April. Value exceeded the forecasts of economists who had expected growth of the index to 53.1.

The Australian dollar fell after the release of the worst in the last two years of statistics on the country's GDP. As shown by the data that was presented today by the Australian Bureau of Statistics, in the first quarter of the country's economy has grown, but not enough to confirm the estimates of experts. According to the report, the seasonally adjusted gross domestic product in Australia rose in the first quarter, up 0.6 percent from the previous three months, which was below analysts' average forecast of 0.8 percent increase, after 0.6 percent growth in fourth quarter 2012. In addition, the data showed that the volume of trade increased by 2.7 percent, while real gross domestic income rose by 1.1 percent.

The Australian Bureau of Statistics also reported that the main contribution to GDP growth was marked by net exports, which rose by 1.0 percentage points, and final consumption expenditure, which increased by 0.4 percentage points. Add that offset part of the decline in the overall growth of gross fixed capital formation (-0.7 percentage points) and the change in inventories (-0.4 percentage points).

It should be noted that in the context of the main sectoral contribution to GDP was recorded from agriculture, forestry and fishing (2.6 percent), transportation, storage and postal services (2.4 percent), financial and insurance services (in 2.2 percent), retail trade (2.1 per cent) and mining (1.5 per cent).

Financial and insurance services contributed to the increase in gross domestic product by 0.2 percentage points, while the other major sub-sectors helped lift gross domestic product by 0.1 percentage points.

At the same time, the report showed that the annualized gross domestic product grew by 2.5 percent, which was also below the average forecast of experts at the level of 2.7 per cent increase, which followed a growth of 3.1 percent over the previous three months.

EUR/USD $1.2975, $1.3000, $1.3025, $1.3075, $1.3100, $1.3120, $1.3150

USD/JPY Y98.50, Y99.50, Y100.00, Y101.00, Y101.50

GBP/USD $1.5000, $1.5060, $1.5150, $1.5225, $1.5300

USD/CHF Chf0.9500, Chf0.9600

EUR/CHF Chf1.2500

EUR/GBP stg0.8550

GBP/CHF Chf1.4555

AUD/USD $0.9550, $0.9600, $0.9700, $0.9825, $0.9850, $0.9890

AUD/JPY Y96.85, Y97.00

Labor costs for U.S. businesses plunged in the first three months of 2013 after a strong run up the prior quarter, as companies moved payments forward in anticipation of a tax increase.

Unit labor costs, which represent the cost of labor to produce a single unit of product, decreased at a 4.3% seasonally adjusted annual rate in the first quarter, the Labor Department said Wednesday. That's a big downward revision for the initially estimated 0.5% gain in costs reported last month.

Meanwhile, productivity, or workers' output per hour, was revised down slightly to a 0.5% gain from the previously reported 0.7%. The revised number mostly reflects weaker output during the quarter.

Economists surveyed by Dow Jones Newswires had estimated that productivity rose by 0.4% in the first quarter and that unit labor costs increased 0.5%.

The revised figures take into account new data sources, including a quarterly wage survey.

Unit labor costs plunged in the first quarter after a 11.8% gain in the final three months of 2012. The fluctuations are due to a 9.9% jump in hourly compensation in the fourth quarter followed by a 3.8% decline the first quarter.

That likely reflects the fact that many companies pulled employee payments into the end of last year to avoid tax increases that took place in January.

From a year earlier, first quarter unit labor costs were up a relatively mild 1.1%.

The downward revision in first-quarter productivity follows a downward revision in gross domestic product for the period. The Commerce Department last week said the nation's GDP, a measure of all goods and services produced in the economy, advanced at a 2.4% seasonally adjusted annual rate between January and March, down from its initial 2.5% reading.

The weaker gain in productivity point to only modest demand and may discourage companies from hiring more workers.

Canadian monthly building permits increased unexpectedly in April to post the largest gain in six months as planned construction of multi-family homes such as condominiums rose at the fastest pace since March 2011.

The value of building permits issued by Canadian municipalities rose 10.5% in April, the fourth consecutive gain, to 6.96 billion Canadian dollars ($6.73 billion), Statistics Canada said Wednesday. Plans to build multi-family residence, including scondominiums, apartments and town houses, soared 51.9%, led by gains in Ontario, British Columbia and Quebec.

The consensus call was for a 3% decline in overall permits, according to a report from Royal Bank of Canada. The prior month's increase, originally estimated at 8.6%, was revised down to 6.0%.

On a year-on-year basis, building permits in April rebounded to 5.4% after declining 8.9% in March.

The data, which provide an early indication of building activity, is based on a survey of 2,400 municipalities representing 95% of the country's population.

Raising concerns about Friday's jobs report from the Labor Department, payroll processor Automatic Data Processing, Inc. (ADP) released a report on Wednesday showing much weaker than expected private sector job growth in the month of May.

ADP said private sector employment increased by 135,000 jobs in May following a downwardly revised increase of 113,000 jobs in April.

Economists had expected private sector employment to increase by about 171,000 jobs in May compared to the addition of 119,000 jobs originally reported for the previous month.

07:50 France Services PMI (Finally) May 44.3 44.3 44.3

07:55 Germany Services PMI (Finally) May 49.8 49.8 49.7

08:00 Eurozone Services PMI (Finally) May 47.5 47.5 47.2

08:30 United Kingdom Purchasing Manager Index Services May 52.9 53.1 54.9

09:00 Eurozone Retail Sales (MoM) April -0.2% -0.2% -0.5%

09:00 Eurozone Retail Sales (YoY) April -2.4% -0.6% -1.1%

09:00 Eurozone GDP (QoQ) (Revised) Quarter I -0.2% -0.2% -0.2%

09:00 Eurozone GDP (YoY) (Revised) Quarter I -1.0% -1.0% -1.1%

Euro retreated from highs against the dollar under pressure data on the reduction of GDP, weak economic activity and a fall in retail sales. Eurozone economy contracted by 0.2% in the first quarter compared with the previous quarter, as originally expected, according to the second estimate by Eurostat. Recession, so lasts for the sixth quarter. Last sequential decline follows a 0.6% strength drop in the fourth quarter of 2012. In annual terms, gross domestic product fell by 1.1%, slightly higher than the 1% decline according to preliminary estimates from May 15. GDP fell by 1% in the fourth quarter of last year.

Economic activity in the euro area continued to decline in May. It joins a list of attributes, svidetelstvyyuschih that the prolonged slump in the euro area will continue in the near future. However, the positive signals from Germany and Spain give up hope that the situation will stabilize. According to the company Markit, released on Wednesday, the composite Purchasing Managers Index (PMI) euro zone in May rose to 47.7 against 46.9 in April. This index coincided with advanced.

According to the latest Eurostat data, retail sales in the eurozone fell in April, the third month in a row. Sales fell by 0.5% in the month dimension, which is faster than the 0.2% drop, which was reported in March. Economists had forecast a drop of 0.2%. Sales of food, beverages and tobacco products fell by 2% compared with the previous month, while the trade of non-food items, with the exception of car fuel, increased by 0.6%. On an annual basis, total retail sales fell by 1.1% compared with 2.2% ethyl drop in March. The decline was greater than the 0.8% drop forecast by economists.

The pound rose after the UK services PMI showed strong growth. Activity in the UK service sector, which occupies a dominant position in the national economy in May grew at the fastest pace in more than a year. This pickup in activity is likely to continue, as new orders increased most rapidly in three years. These are the results of a monthly survey conducted by Markit and the Chartered Institute of Purchasing & Supply.

Increased activity in the services sector - the strongest signal yet that the recovery that began in the 1st quarter, should continue in the 2nd quarter onwards. This makes it highly unlikely the Bank of England to provide additional economic stimulus at the meeting, which will end on Thursday.

Purchasing Managers Index (PMI) for the service sector rose in May to 54.9, its highest level since March 2012, against 52.9 in April. Value exceeded the forecasts of economists who had expected growth of the index to 53.1.

The yen rose against the dollar after today Japanese Prime Minister Abe outlined the next steps of its plan to stimulate the economy. During his speech, he said that will create certain economic areas to attract foreign investors, the annual income will be increased by 3%, and in the electric power sector will be lifted all restrictions. Abe drew attention to measures aimed at stimulating long-term growth. Japanese Prime Minister said that revenue growth was an important event, because "the purpose of the growth strategy - is primarily the creation of jobs for active people and increase wages for those who work a lot."

EUR / USD: during the European session, the pair fell to $ 1.3052

GBP / USD: during the European session, the pair rose to $ 1.5371

USD / JPY: during the European session, the pair fell to Y99.27

At 12:15 GMT the United States will change in the number of employees from ADP in May. At 12:30 GMT Canada will publish the change in the volume of building permits issued in April. In the U.S., at 12:30 GMT will change in the level of labor productivity in the non-manufacturing sector for the 1st quarter, a 14:00 GMT - ISM composite index of non-manufacturing activity in May and the change in volume production orders for April. At 18:00 GMT will publish economic survey of the Fed's regional "Beige Book."

EUR/USD

Offers $1.3140/50, $1.3110

Bids $1.3050/40, $1.3030, $1.3000/995, $1.2980/70

GBP/USD

Offers $1.5420/30, $1.5395/400, $1.5380-85

Bids $1.5350, $1.5270, $1.5260/50, $1.5230, $1.5200/190

AUD/USD

Offers $0.9735/40, $0.9710, $0.9700, $0.9680, $0.9645/50

Bids $0.9550/45, $0.9525, $0.9500, $0.9450

EUR/JPY

Offers Y132.00, Y131.50, Y131.20, Y130.90/00

Bids Y130.10/00, Y129.80/70, Y129.50, Y129.20, Y129.00

USD/JPY

Offers Y100.95/00, Y100.50/60, Y100.35/40

Bids Y99.40/35, Y99.20/10, Y99.00, Y98.60/50

EUR/GBP

Offers stg0.8620, stg0.8595/600, stg0.8575/80, stg0.8560/65

Bids stg0.8490, stg0.8475/70, stg0.8445/40

Eurozone's retail sales declined for a third successive month in April, the latest figures from Eurostat revealed Wednesday.

Sales dropped 0.5 percent month-on-month in April, faster than a 0.2 percent fall reported in March. Economists had forecast a 0.2 percent fall.

Sales of food, drinks and tobacco fell 2 percent from a month earlier, while trade in non-food products, except auto fuel, increased 0.6 percent.

On an annual basis, total retail sales slipped 1.1 percent compared with a 2.2 percent drop in March. The decline was steeper than a 0.8 percent fall predicted by economists.

Germany alloted E3.354bln of 5-year benchmark 0.25% Apr 2018 Bobl issue Wednesday at an average yield of 0.54% (0.38%) and bid-to-cover ratio of 2.0 times (2.1).

The euro area economy shrank 0.2 percent in the first quarter from the prior quarter as initially estimated, second estimates from Eurostat showed Wednesday.

The recession, thus extended into the sixth quarter. The latest sequential decline follows a 0.6 percent drop in the fourth quarter of 2012.

On a yearly basis, gross domestic product was down 1.1 percent, which was slightly sharper than the 1 percent contraction estimated on May 15. GDP decreased 1 percent in the fourth quarter of last year.

The expenditure side breakdown showed that all sub-components except household spending declined in the first quarter. Government spending slipped 0.1 percent, while household expenditure grew 0.1 percent sequentially.

Investment plunged 1.6 percent. At the same time, exports and imports were down 0.8 percent and 1.1 percent, respectively.

Activity in the British service sector increased at a faster rate in May, and to a greater extent than forecast by economists, as new business intakes increase the most in more than three years, data from a survey by Markit Economics and the Chartered Institute of Purchasing and Logistics (CIPS) showed Wednesday.

The seasonally adjusted purchasing managers' index (PMI) for the service sector increased to 54.9 in May from 52.9 in April, marking the fifth successive growth that was the sharpest in since March 2012. The index was forecast to rise to 53.1. PMI reading above 50 suggests growth, while those below indicate decline.

The sharp increase in activity was driven by a combination of higher sales volumes, promotional activities and new product launches, the survey showed.

In line with the upturn in activity, firms increased their workforces for the fifth consecutive month amid evidence of marginal capacity pressures and with positive expectations for the coming year.

Input price inflation in the services sector continued the downward trend in May and hit the lowest level in twelve months. Factory gate prices decreased modestly during the month amid competitive pressures.

At the same time, business confidence was a little firmer in May as entrepreneurs were encouraged by current trends in new work, and expect a better economic climate to support expansion.

EUR/USD $1.2975, $1.3000, $1.3025, $1.3075, $1.3100, $1.3120, $1.3150

USD/JPY Y98.50, Y100.00, Y101.50

GBP/USD $1.5000, $1.5060, $1.5150, $1.5225, $1.5300

USD/CHF Chf0.9500, Chf0.9600

EUR/CHF Chf1.2500

GBP/CHF Chf1.4555

AUD/USD $0.9700, $0.9825, $0.9850, $0.9890

AUD/JPY Y96.85, Y97.00

01:30 Australia Gross Domestic Product (QoQ) Quarter I +0.6% +0.8% +0.6%

01:30 Australia Gross Domestic Product (YoY) Quarter I +3.1% +2.7% +2.5%

01:45 China HSBC Services PMI May 51.1 51.2

Demand for the euro was limited before data forecast to confirm a sixth straight quarter of contraction in the region's economy. Preliminary figures will probably show that gross domestic product in the 17-nation euro zone shrank 0.2 percent in the three-months ended March 31, after a 0.6 percent decline in the fourth quarter, economists predicted before the release today.

The dollar held above 100 yen for a second day, after rallying from the lowest in almost a month, before U.S. employment data that may add to the case for the Federal Reserve to slow stimulus. The Labor Department reported last month that nonfarm payrolls swelled by 165,000 jobs in April, more than forecast, and the unemployment rate unexpectedly fell to 7.5 percent. It will probably say June 7 that employers added 167,000 workers in May, economists forecast.

Kansas City Fed President Esther George yesterday urged a reduction in the central bank's bond-buying program, known as quantitative easing, as growth quickens. "In light of improving economic conditions, I support slowing the pace of asset purchases as an appropriate next step for monetary policy," Kansas City Fed President George said in the text of her speech. "Waiting too long to acknowledge the economy's progress and prepare markets for more-normal policy settings carries no less risk than tightening too soon," she said.

San Francisco Fed President John Williams said a "modest adjustment downward" in purchases is possible "as early as this summer."

Australia's dollar fell after the nation's economy grew at the slowest pace in almost two years. In Australia, GDP (AUNAGDPC) grew at a 2.5 percent annualized rate in the first quarter, the slowest pace since the three months ended June 30, 2011, a statistics bureau report released in Sydney showed. The result was less than the 2.7 percent increase expected by economists in a Bloomberg survey and revised 3.2 percent growth in the fourth quarter.

EUR / USD: during the Asian session the pair rose to $ 1.3095

GBP / USD: during the Asian session the pair traded in the range of $ 1.5290-20

USD / JPY: during the Asian session the pair traded in the range of Y100.00-45

Eurozone services PMI provides the morning interest, beginning with Spain at 0713GMT, with Eurozone due to finish the set at 0758GMT. Eurozone retail sales and GDP follow at 0900GMT. US ADP opens afternoon trade at 1215GMT, followed by factory orders and non-mfg ISM at 1400GMT.

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

EUR/USD $1,3081 +0,09%

GBP/USD $1,5314 -0,02%

USD/CHF Chf0,9469 -0,03%

USD/JPY Y100,04 +0,60%

EUR/JPY Y130,87 +0,70%

GBP/JPY Y153,20 +0,58%

AUD/USD $0,9648 -1,24%

NZD/USD $0,8017 -1,02%

USD/CAD C$1,0339 +0,57%

01:30 Australia Gross Domestic Product (QoQ) Quarter I +0.6% +0.8%

01:30 Australia Gross Domestic Product (YoY) Quarter I +3.1% +2.7%

01:45 China HSBC Services PMI May 51.1

07:00 United Kingdom Halifax house price index May +1.1% +0.2%

07:00 United Kingdom Halifax house price index 3m Y/Y May +2.0% +2.5%

07:50 France Services PMI (Finally) May 44.3 44.3

07:55 Germany Services PMI (Finally) May 49.8 49.8

08:00 Eurozone Services PMI (Finally) May 47.5 47.5

08:30 United Kingdom Purchasing Manager Index Services May 52.9 53.1

09:00 Eurozone Retail Sales (MoM) April -0.1% -0.2%

09:00 Eurozone Retail Sales (YoY) April -2.4% -0.6%

09:00 Eurozone GDP (QoQ) (Revised) Quarter I -0.2% -0.2%

09:00 Eurozone GDP (YoY) (Revised) Quarter I -1.0% -1.0%

12:15 U.S. ADP Employment Report May 119 171

12:30 Canada Building Permits (MoM) April +8.6% -2.3%

12:30 U.S. Nonfarm Productivity, q/q (Finally) Quarter I +0.7% +0.7%

14:00 U.S. ISM Non-Manufacturing May 53.1 53.4

14:00 U.S. Factory Orders April -4.0% +1.6%

14:30 U.S. Crude Oil Inventories May +3.0

18:00 U.S. Fed's Beige Book June