The dollar rose against most major currencies after the Commerce Department report showed that U.S. retail sales unexpectedly rose in April, reinforcing optimism about the world's largest economy. As it became known, retail sales in the U.S. rose in April by 0.1%, while the expected decline of 0.3%.

Euro falls a third day against the dollar in anticipation of data on euro area GDP, which economists forecast will show the reduction in the sixth quarter in a row. At the same time, the single currency rose against the yen.

The dollar rose to its highest level since 2008 against the yen, breaking the mark of 102 yen to the dollar, amid speculation that the incentive program the Federal Reserve will cut its monthly bond purchases to boost growth. Also, the yen weakened after Tokyo avoided direct criticism of its aggressive monetary program for the Group of Seven meeting over the weekend, putting the Japanese currency on the way to a further reduction in the short term. Analysts and traders said the dollar broke through the psychologically important level of 100 yen last week due to signs of improvement in the labor market in the United States, not by the actions of the Bank of Japan. The data show that Japanese investors are buying more foreign assets, which also precipitated the fall of the yen on Friday.

The Australian dollar weakened against the U.S. dollar on the background of the fact that a survey conducted by the National Bank of Australia, showed that business confidence fell in April, ahead of the release of the federal budget. Note that the index of the NAB business confidence fell to -2 in April from 2 in March, and the conditions index rose to -6 from -7 in March. Also today it was announced that in March month agreed amount of housing loans has increased significantly, thus showing the greatest growth over the past four years, as a series of interest rate cuts by the central bank since 2011 has increased the demand for mortgages. According to the report, on an annual basis, mortgage lending rose 5.2 percent in March after seasonal adjustment. It was the biggest gain since March 2009. In addition, it was reported that the number of loan approvals rose for a third consecutive month, after rising 2.1 percent in February and 0.7 percent in January.

EUR/USD $1.2950, $1.3050, $1.3070, $1.3085, $1.3100

USD/JPY Y100.00, Y101.50, Y102.35, Y102.50

GBP/USD $1.5400, $1.5550

EUR/CHF Chf1.2365

AUD/USD $0.9900, $0.9970, $1.0000, $1.0065, $1.0145

Data

01:30 Australia Home Loans March +2.0% +3.8% +5.2%

01:30 Australia National Australia Bank's Business Confidence April 2 -2

05:30 China Retail Sales y/y April +12.6% +12.8% +12.8%

05:30 China Fixed Asset Investment April +20.9% +21.1% +20.6%

05:30 China Industrial Production y/y April +8.9% +9.4% +9.3%

07:15 Switzerland Retail Sales Y/Y March +2.4% +1.0% -0.9%

09:00 Eurozone Eurogroup Meetings May

The euro exchange rate was slightly higher against the dollar, helped by expectations of a report on retail sales in the United States. Recall that in March retail sales fell by 0.4%. The weakness was observed in many sectors, particularly in the consumer category, where during the month was recorded a decline in sales at sporting goods stores, book and music stores, as well as in the general stores. We add that the sale of vehicles and spare parts also saw a decline in March. Economists said the growth in employment and incomes continue to support consumer spending, however, the growth rate is unlikely to be able to maintain a tangible improvement in the retail sector. Note also that for the three-month average basis, retail sales growth has slowed, suggesting that consumers are still not sure about the adequacy of the economic recovery to pick up the costs on an ongoing basis. We expect that retail sales will continue to decline in April, but at a slower pace than in March.

The yen fell below 102 yen to the dollar after Tokyo avoided direct criticism of its aggressive monetary program for the Group of Seven meeting over the weekend, putting the Japanese currency on the way to a further decline in the short term.

Analysts and traders said the dollar broke through the psychologically important level of 100 yen last week due to signs of improvement in the labor market in the United States, not by the actions of the Bank of Japan. The data show that Japanese investors are buying more foreign assets, which also precipitated the fall of the yen on Friday.

The Australian dollar weakened against the U.S. dollar on the background of the fact that a survey conducted by the National Bank of Australia, showed that business confidence fell in April, ahead of the release of the federal budget. Note that the index of the NAB business confidence fell to -2 in April from 2 in March, and the conditions index rose to -6 from -7 in March.

Also today it was announced that in March month agreed amount of housing loans has increased significantly, thus showing the greatest growth over the past four years, as a series of interest rate cuts by the central bank since 2011 has increased the demand for mortgages. According to the report, on an annual basis, mortgage lending rose 5.2 percent in March after seasonal adjustment. It was the biggest gain since March 2009. In addition, it was reported that the number of loan approvals rose for a third consecutive month, after rising 2.1 percent in February and 0.7 percent in January.

EUR / USD: during the European session, the pair is trading in the range of $ 1.2951-$ 1.2992

GBP / USD: during the European session, the pair rose to $ 1.5380

USD / JPY: during the European session, the pair fell to Y101.49

At 12:30 GMT the United States will become aware of the change in retail sales in April, and 14:00 GMT - the change in our Business Inventories for March. Also at 14:00 GMT the United States will announce the percentage of late payments on the mortgage for the 1st quarter. At 22:45 GMT New Zealand will report on changes in the volume of retail trade and changes in retail sales excluding auto sales for the 1st quarter. At 23:01 GMT Britain will present a balance in housing prices from the RICS in April.

EUR/USD

Offers $1.3080/85, $1.3040/50, $1.3015/20, $1.3000

Bids $1.2935, $1.2915/00, $1.2880/75, $1.2860/50

GBP/USD

Offers $1.5520/25, $1.5480/85, $1.5450/55, $1.5400/20, $1.5380/90

Bids $1.5335/30, $1.5300/295, $1.5285/80, $1.5265/50

AUD/USD

Offers $1.0145/50, $1.0120, $1.0090/00, $1.0070/80, $1.0050, $1.0015/20

Bids $0.9925/20, $0.9900, $0.9850

EUR/GBP

Offers stg0.8545/50, stg0.8530/35, stg0.8500/10, stg0.8470/75, stg0.8453

Bids stg0.8430/25, stg0.8410/00

EUR/JPY

Offers Y133.50, Y133.00, Y132.50, Y132.15/20

Bids Y131.50, Y131.30, Y131.10/00, Y130.80

USD/JPY

Offers Y103.00, Y102.50, Y102.25, Y102.10/20, Y101.95/00

Bids Y101.50, Y101.20, Y101.00, Y100.80, Y100.60/50

EUR/USD $1.2950, $1.3050, $1.3070, $1.3085, $1.3100

USD/JPY Y100.00, Y101.50, Y102.35, Y102.50

GBP/USD $1.5400, $1.5550

EUR/CHF Chf1.2365

AUD/USD $0.9900, $0.9970, $1.0000, $1.0065, $1.0145

USD/CAD C$1.0085

01:30 Australia Home Loans March +2.0% +3.8% +5.2%

01:30 Australia National Australia Bank's Business Confidence April 2 -2

05:30 China Retail Sales y/y April +12.6% +12.8% +12.8%

05:30 China Fixed Asset Investment April +20.9% +21.1% +20.6%

05:30 China Industrial Production y/y April +8.9% +9.4% +9.3%

The yen slid for a fourth day to breach 102 per dollar for the first time in four years as Group of Seven finance chiefs indicated they'll tolerate a slide in the currency for now as they focus on Japan's recovery strategy.

The dollar's advance may be capped before Commerce Department figures today that may show U.S. retail sales fell in April for a second month, according to the median forecast of economists surveyed by Bloomberg News. Excluding automobiles and gasoline, sales probably climbed.

The greenback strengthened versus its 16 major peers after Treasury benchmark 10-year yields rose to the highest in seven weeks and before Federal Reserve Bank of Philadelphia President Charles Plosser speaks tomorrow. Plosser said May 9 that U.S. unemployment will probably fall to 7 percent at the end of 2013 and he would favor reducing the Fed's $85 billion monthly pace of bond-buying next month. His remarks highlight a debate within the Federal Open Market Committee on whether to expand or curb the pace of asset purchases that pumped up the central bank's balance sheet to $3.32 trillion.

The Australian dollar extended a slump from last week, the biggest five-day decline since November 2011, as Treasurer Wayne Swan is forecast to project a fifth and sixth year of budget deficits tomorrow.

EUR / USD: during the Asian session, the pair traded in the range of $ 1.2955-80

GBP / USD: during the Asian session, the pair is trading around $ 1.5350

USD / JPY: during the Asian session, the pair rose to Y102.15

01:30 Australia Home Loans March +2.0% +3.8%

01:30 Australia National Australia Bank's Business Confidence April 2

02:30 New Zealand REINZ Housing Price Index, m/m April +2.4%

05:30 China Retail Sales y/y April +12.6% +12.8%

05:30 China Fixed Asset Investment April +20.9% +21.1%

05:30 China Industrial Production y/y April +8.9% +9.4%

07:15 Switzerland Retail Sales Y/Y March +2.4% +1.0%

09:00 Eurozone Eurogroup Meetings May

12:30 U.S. Retail sales April -0.4% -0.3%

12:30 U.S. Retail sales excluding auto April -0.4% -0.1%

14:00 U.S. Business inventories March +0.1% +0.3%

22:45 New Zealand Retail Sales, q/q Quarter I +2.1% +0.9%

22:45 New Zealand Retail Sales ex Autos, q/q Quarter I +1.5% +0.7%

23:01 United Kingdom RICS House Price Balance April -1% -2%