The euro rose against major currencies, responding thus to the completion of a two-month political crisis in Italy. On Saturday, Enrico Letta officially took over as prime minister of Italy. On Sunday, Italy's new government, which was formed from the representatives of the Democratic Party, the "People of Freedom" and "The Civil choice", has taken the oath. Note that a slight pressure on the single currency was weak data on the index of sentiment in the business environment and the economy of the region, which were worse than expected. However, the decline in the euro after the data was limited to the publication of information on the last auction of government bonds in Italy, the results of which are much better than previous similar.

Add that little impact on the dynamics of trade affected, and U.S. data, which showed that the number of pending home sales rose in March by 1.5% to 105.7, what happened after the fall of 1% (to 104.1) in February. We add that, according to the average forecast of economists, this indicator would grow by 1.1%. In addition, the data showed that the annualized amount of outstanding home sales rose by 7.0% compared with March of last year, registering with the 23rd consecutive monthly gain.

In addition, another report showed that personal spending, which measure the amount of purchases, from cars and clothing to health care and heating, rose last month by 0.2%, which was followed, after rising 0.7% in February. Economists note that the slowdown in spending have fueled drop in gasoline prices. Note that consumer spending accounts for about two-thirds of economic activity in the United States, and Americans tend to spend more when incomes rise, giving a potential boost to growth. Meanwhile, it was reported that incomes rose by only 0.2%, possibly reflecting weak job growth.

The Canadian dollar rose to a two-week high against the dollar, helped by a rise in oil prices, which is the country's largest export, as well as speculation that the U.S. will support the incentive program, and the European Central Bank will cut interest rates. Note also that contributes to the strengthening of the fact that tomorrow will be published data on the growth of the gross domestic product of Canada in February. It is predicted that the economy will expand by 0.2%, which corresponds to the January increase. Experts also point out that the growth of currency help the submitted data on U.S. GDP, which is the largest trading partner of Canada. Recall that GDP in the last quarter grew by 2.5 per cent per annum, compared with forecasts of 3 percent.

The pound strengthened to a 10-week high against the dollar as a report showed that house prices in the UK increased this month, boosting optimism about the fact that the recovery is gaining momentum. Also the growth of currency helps a government report that showed that the UK economy has avoided a recession in the last quarter, dropping speculation that the Bank of England will raise incentives. Note that the next meeting of the Bank of England will take place on May 8-9. Economists say that after the split policy this month to agree on whether to increase the size of the program to purchase assets, at the next meeting of the data differences may be reduced.

EUR/USD $1.2850, $1.2900, $1.3000, $1.3050, $1.3100

USD/JPY Y96.50, Y97.50, Y98.00, Y98.30, Y98.80, Y100.00

EUR/GBP stg0.8600, stg0.8640

AUD/USD $1.0200, $1.0260, $1.0280, $1.0285/95, $1.0300, $1.0365, $1.0450

AUD/JPY Y102.00

NZD/USD $0.8350

USD/CAD C$1.0340

EUR/USD

Offers $1.3170/80, $1.3145/50, $1.3115/30

Bids $1.3030/20, $1.2980, $1.2960/50

GBP/USD

Offers $1.5600/10, $1.5575/85, $1.5550

Bids $1.5510, $1.5500/490, $1.5460/50, $1.5430/20, $1.5410/00

USD/JPY

Offers Y98.80, Y98.45/50, Y98.30, Y98.00

Bids Y97.40/35, Y97.30, Y97.20/00, Y96.80, Y96.50

AUD/USD

Offers $1.0475/80, $1.0450, $1.0420, $1.0395/00, $1.0380, $1.0355/60, $1.0345/50

Bids $1.0305/00, $1.0265/60, $1.0250, $1.0220/10

EUR/GBP

Offers stg0.8530/35, stg0.8500/05, stg0.8480/85, stg0.8440/50

Bids stg0.8360/50

EUR/JPY

Offers Y129.40/50, Y129.00, Y128.75/80, Y128.45/50

EUR/USD $1.2850, $1.2900, $1.3000, $1.3050, $1.3100

USD/JPY Y96.50, Y97.50, Y98.00, Y98.30, Y98.80, Y100.00

EUR/GBP stg0.8600, stg0.8640

AUD/USD $1.0200, $1.0260, $1.0280, $1.0285/95, $1.0300, $1.0365, $1.0450

AUD/JPY Y102.00

NZD/USD $0.8350

USD/CAD C$1.0340

00:00 China Bank holiday

00:00 Japan Bank holiday

The Dollar Index fell before U.S. data today forecast to show consumer spending stagnated last month, boosting bets the Federal Reserve will renew its commitment to its bond-buying program at a meeting this week. U.S. consumer spending was probably unchanged in March from February when it increased 0.7 percent, according to the median forecast of economists surveyed by Bloomberg News. A separate report showed last week that U.S. gross domestic product expanded at a 2.5 percent annual rate, compared with the 3 percent gain estimated by economists and a 0.4 percent advance in the fourth quarter.

A government report showed on April 26 that the U.S. economy expanded less than forecast in the first quarter, helping Treasury yields extend their monthly decline toward the steepest since May.

The yen advanced against all major peers including the Australian and New Zealand dollars after a Chinese report showed slowing profit growth in industrial companies, supporting demand for refuge assets. Net income at industrial companies in China, the biggest trading partner for Australia and New Zealand, increased 5.3 percent in March from a year earlier, compared with a 17.2 percent pace in the first two months, the National Bureau of Statistics said on its website on April 27.

The euro extended its slide to a sixth day against the pound, the longest run of declines in a year. The median estimate of economists shows the European Central Bank will cut borrowing costs by 25 basis points from the current all-time low of 0.75 percent at its May 2 meeting.

Japanese markets are closed today and on May 3 for holidays, while those in China are shut for three days starting today.

EUR/USD: during the Asian session the pair traded in the range of $1.3030-60

GBP/USD: during the Asian session the pair rose to $1.5525

USD/JPY: during the Asian session the pair fell to Y97.35

There is little in the way of an overnight lead from Asia on Monday, with both China and Japan closed for national holidays. However, there is a full calendar on both sides of the Atlantic. German April flash HICP numbers are due for release, although there is no scheduled time for release. Flash HICP inflation data should ease any Germanic qualms about the inflationary risks of a rate cut, given recent falls in crude and commodity prices. Analysts are looking for a number of -0.1% m/m and 1.7% on year. Spanish flash HICP numbers are expected at 0700GMT, along with the release of the Spanish March retail sales numbers.At 0730GMT, the Swedish Riksbank monetary policy minutes from the April meet will cross the wires. The Italian Apr ISTAT business survey numbers will be released at 0800GMT. At 0830GMT, the German Export and Wholesale Association will release their export forecasts, in Berlin. Eurozone April consumer confidence and business climate indicator numbers are due at 0900GMT, ECB Executive Board member Joerg Asmussen is slated to speak at the International Institute of Finance meeting in Berlin.

00:00 China Bank holiday

00:00 Japan Bank holiday

09:00 Eurozone Business climate indicator April -0.86 -0.91

09:00 Eurozone Economic sentiment index April 90.0 89.4

09:00 Eurozone Industrial confidence April -12.5 -13.5

12:00 Germany CPI, m/m (Preliminary) April +0.5% -0.2%

12:00 Germany CPI, y/y (Preliminary) April +1.4% +1.4%

12:30 U.S. Personal Income, m/m March +1.1% +0.4%

12:30 U.S. Personal spending March +0.7% +0.2%

12:30 U.S. PCE price index ex food, energy, m/m March +0.1% +0.1%

12:30 U.S. PCE price index ex food, energy, Y/Y March +1.3% +1.2%

14:00 U.S. Pending Home Sales (MoM) March -0.4% +1.1%

22:45 New Zealand Building Permits, m/m March +1.9% +2.0%

23:01 United Kingdom Gfk Consumer Confidence April -26 -26

23:15 Japan Manufacturing PMI April 50.4

23:30 Japan Household spending Y/Y March +0.8% +1.7%

23:30 Japan Unemployment Rate March 4.3% 4.3%

23:50 Japan Industrial Production (MoM) (Preliminary) March +0.6% +0.4%

23:50 Japan Industrial Production (YoY) (Preliminary) March -10.5% -7.2%

23:50 Japan Retail sales, y/y March -2.3% +0.5%