The euro rose against the dollar ahead of the publication of reports on German IFO, PMI index for the euro area and the minutes of the FOMC this week. As for the protocol, the markets will closely monitor the tone of statements for clues to limit QE. Many experts expect the key representatives of the Central Bank will sound confident about the program, but also recognize that markets may behold some "turbulence".

We add that the economic calendar today was nearly empty because of the holidays in European countries. It may be noted the data on orders in industry in Italy. In March of 2013 the volume of orders for production equipment in Italy rose by 1.6% compared to the previous month, when the decline was 2.5%, according to the Italian statistics agency Istat. The volume of orders for production equipment in March compared to March 2012 fell by 10%. Analysts had expected growth of the first indicator by 1.6%, and the second drop of 8.4%.

The yen rose against the dollar after Japan's Economy Minister Akira Amari said that a further reduction in the national currency could have a negative impact, after the yen fell to its lowest level since 2008 last week. The yen rose against all but one of the 16 major currencies on news that the Japanese government may be satisfied by the current exchange rate, after a significant decline in the yen earlier. In the Wall Street Journal it was reported that Japan's economy minister Akira Amari said that excessive strengthening of the yen largely corrected and further weakening may be harmful. Further reduction in the USD / JPY may depend on the results of the Bank of Japan on May 21-22, and the speech of the Chairman of the Federal Reserve Ben Bernanke in Congress on May 22. It is expected that the Bank of Japan will not even soften monetary policy, but it can make a "fine tuning" of current operations, to reduce the volatility of the bond market.

The pound rose significantly against the dollar after a report from Rightmove showed that in May, the cost of housing in the UK has increased, registering with the fifth consecutive monthly increase, which was due to the limited supply. According to the report, in May, prices rose, reaching a record high - 249,841 pounds, as new sellers raised prices by 2.1 percent compared to the previous month. Recall that, by the end of last month, prices have shown a similar increase. Meanwhile, studies have shown that taking into account the fifth monthly increase in house prices are now 9.1 per cent higher compared to last year, which is the highest increase since 2004.

The data also showed that property prices in the capital - London, were more than twice as much as the national average, and reached a record high. Note that the average home price rose in May by 3.3 percent to 509,870 while the British pound.

Among the regions that have achieved high growth rates in the last month, became the North of England (at £ 6182, or 4.2%) and the East of England (at £ 8909, or 4%).

On an annual basis, housing prices nationally rose 2.5 percent, which is much faster than the 0.4 percent increase registered in April. According to Rightmove, cheap loans and a positive mood began to release pent-up demand. We also add that the rise in house prices are a signal that the program of asset purchases and credit financing scheme of the Bank of England is the basis of recovery in the property market.

European stocks advanced, extending the Stoxx Europe 600 Index's highest level since June 2008, as the region's carmakers rallied.

The Stoxx 600 rose 0.3 percent to 309.77 at the close of trading. The gauge rallied 1.2 percent last week, reaching its highest level since June 2008, as the Bank of England lifted its growth forecast for Europe's third-biggest economy.

Federal Reserve Chairman Bernanke testifies on the outlook for the U.S. economy to the Joint Economic Committee of Congress on May 22. The Fed will release the minutes of its April 30 to May 1 policy meeting on the same day.

National benchmark indexes gained in seven of the 12 western-European markets that opened today.

FTSE 100 6,755.63 +32.57 +0.48% CAC 40 4,022.85 +21.58 +0.54% DAX 8,455.83 +57.83 +0.69%

Rheinmetall AG gained 4 percent to 39.62 euros after Deutsche Bank raised the maker of automotive parts to hold from sell. The brokerage forecast that European automakers will produce more cars and trucks in the second half of this year.

Ryanair (RYA) soared 6.9 percent to 6.77 euros, its biggest rally since September 2011, after reporting that net income rose to 569 million euros ($732 million) in the 12 months through March 31 from 503 million euros a year earlier. That beat the 560 million-euro average estimate of analysts. Revenue climbed 13 percent to 4.33 billion euros. The company also said that it will use more of its planes than usual next winter, increasing its number of passengers for the year to 81.5 million. That will lift its earnings to as much as 600 million euros.

EasyJet Plc (EZJ), Europe's second-largest low-cost carrier, rose 4 percent to 1,235 pence.

Impregilo SpA surged 15 percent to 3.41 euros, its largest rally in more than five years, after winning a 1.7 billion-euro contract to build a line of the Doha metro in Qatar.

FirstGroup Plc (FGP) slumped 30 percent to 155.6 pence, the biggest drop since at least 1995, after the operator of buses and trains said it will not pay a dividend. The company also announced a 615 million-pound ($936 million) capital increase through a rights offer.

Oil prices rose, with rising above $ 105 a barrel, even though the speculation that the rise in price of oil last week was too much.

Note that the dynamics of trades also had a statement by the International Energy Agency, which reported that the fundamental outlook for oil look less positive in view of weaker demand growth this year, as well as higher levels of supply. According to experts, in the short-term market looks quite balanced, and therefore, we should expect trade in a range between $ 90 and $ 110 per barrel.

Note also that the world's stock markets were close to five-year highs, driven by optimism about the prospects for global growth. But trading volume on most financial markets was low, as in a number of countries are celebrated religious holidays.

We also add that many traders are awaiting the publication of minutes of the last meeting FOCM, to be issued on Wednesday. This event may help to assess the prospects for the oil market, as well as provide any hints continuation of monetary easing by the Federal Reserve.

the U.S. central bank.

Also worth noting is that oil markets were supported by tensions in the Middle East, which has raised concerns about the security of supply of the largest producers in the region.

The cost of the June futures on U.S. light crude oil WTI (Light Sweet Crude Oil) rose to 96.72 dollars a barrel on the New York Mercantile Exchange.

June futures price for North Sea Brent crude oil mixture rose $0.40 to $ 105.02 a barrel on the London exchange ICE Futures Europe.

Gold prices retreated from the lows, approaching at the same session to the highest levels. Note that the above spot price of gold reached a low of $ 1,338.95 an ounce, the lowest level since April 16, which was due to concerns that European central banks may liquidate gold reserves. Add that break through the technical level of $ 1,525 per ounce also contributed significantly to sales. It is worth noting that if today's trading will be closed down, it will be the 8th daily drop and the longest string of losses since March 2009.

Meanwhile, the report of the Commodity Futures Trading (CFTC) showed that hedge funds and money managers reduced their "long position" for gold and silver for the week to 14 May.

In addition, it was reported that the stocks in the SPDR Gold Trust - the largest gold exchange-traded fund in the world, reached on Friday, the lowest level in four years, dropping to 3 tons to 1,038.41 tons mark.

The cost of the June gold futures on COMEX today dropped to 1358.00 dollars an ounce.

U.S. stocks were little changed as investors await on Fed Chairman Bernanke's testify before Congress on Wednesday about the economic outlook.

Global Stocks:

Nikkei 15,360.81 +222.69 +1.47%

Hang Seng 23,493.03 +410.35 +1.78%

Shanghai Composite 2,299.99 +17.12 +0.75%

FTSE 6,710.92 -12.14 -0.18%

CAC 3,994.34 -6.93 -0.17%

DAX 8,408.07 +10.07 +0.12%

Crude oil $95.65 +0.39%

Gold $1354.00 -0.78%

Upgrades:

Downgrades:

Other:

 A decline in U.S. industrial production during April sent a closely watched barometer of the economy to its lowest level since January.

The Federal Reserve Bank of Chicago on Monday said its National Activity Index fell to -0.53 in April from -0.23 in March, with three of its four constituent parts registering sequential declines.

Production-related indicators were the main laggards as their contribution fell to -0.34 in April from -0.04 in March. Consumption and housing fell to -0.17 from -0.15 as home starts dropped to 853,000 units in April from 1,021,000 in March, even though housing permits rose slightly.

Sales, orders and inventories were up slightly, but still in negative territory at -0.01 from -0.04. Employment-related indicators were neutral at zero, down from 0.01 in March.

Of the 85 individual indicators included in the compendium index, 44 improved in April while 41 declined. Of those that improved, 18 still remained in negative territory.

The more representative three-month moving average ticked up slightly to -0.04 up from -0.05 in March, indicating expansion close to the historical trend and low inflationary pressures. Last year at this time, the monthly average was -0.13.

EUR/USD

Offers $1.2950, $1.2930/40, $1.2910/25, $1.2890/900, $1.2880

Bids $1.2800, $1.2790-70, $1.2710/00

GBP/USD

Offers $1.5295/300, $1.5260/65, $1.5250, $1.5230/35, $1.5220

Bids $1.5160/50, $1.5130/20

AUD/USD

Offers $0.9900, $0.9880, $0.9845/50, $0.9830/35, $0.9790/00

Bids $0.9720, $0.9710, $0.9700, $0.9650, $0.9600

EUR/GBP

Offers stg0.8545/50, stg0.8530/35, stg0.8490-500, stg0.8480

Bids stg0.8430/20, stg0.8400

EUR/JPY

Offers Y133.50, Y133.00, Y132.75/80, Y132.40/50, Y132.20

Bids Y131.70/60, Y131.50, Y131.30, Y131.10/00, Y130.80

Offers Y104.00, Y103.50, Y103.30/35, Y103.15/20, Y102.90/00

Bids Y102.25/20, Y102.10/00, Y101.85/80, Y101.50

European stocks were little changed, following four consecutive weeks of gains for the benchmark Stoxx Europe 600 Index.

The Stoxx 600 added 0.1 percent to 308.86 at 11:03 a.m. in London as three stocks climbed for every two that dropped. The gauge rallied 1.2 percent last week, reaching its highest level since June 2008, as the Bank of England lifted its growth forecast for Europe's third-biggest economy. Markets in Switzerland, Austria, Denmark, Norway, Iceland and Luxembourg are closed for the Whit Monday holiday.

Ryanair soared 6.3 percent to 6.73 euros after reporting that net income rose to 569 million euros ($732 million) in the 12 months through March 31 from 503 million euros a year earlier. That beat the 560 million-euro average estimate of 19 analysts. Revenue climbed 13 percent to 4.33 billion euros. The company also said that it will use more of its planes than usual next winter, increasing its number of passengers for the year to 81.5 million. That will lift its earnings to as much as 600 million euros.

EasyJet Plc, Europe's second-largest low-cost carrier, rose 4.1 percent to 1,237 pence.

Rheinmetall gained 3.6 percent to 39.47 euros after Deutsche Bank raised the maker of automotive parts to hold from sell. The brokerage forecast that European automakers will produce more cars and trucks in the second half of this year.

Fresnillo, the world's biggest producer of silver, slid 4.2 percent to 1,024 pence. Randgold, a miner in Africa, declined 2 percent to 4,660 pence as gold fell for an eight day.

FTSE 100 6,724.67 +1.61 +0.02%

CAC 40 4,010.95 +9.68 +0.24%

DAX 8,441.74 +43.74 +0.52%

Option expiries for today's 1400GMT cut

EUR/USD $1.2750, $1.2800, $1.2825, $1.2840, $1.2850, $1.2860, $1.2900, $1.2930

USD/JPY Y101.50, Y102.00, Y102.50, Y103.00

GBP/USD $1.5150, $1.5300

EUR/CHF Chf1.2410, Chf1.2425

AUD/USD $0.9700, $0.9750, $0.9825, $0.9845, $0.9850

AUD/JPY Y101.00

Asian stocks rose the first time in three days, with a regional gauge set for the highest close since June 2008, after U.S. consumer sentiment beat estimates and Tokyo Electric Power Co. led Japanese utilities higher.

Nikkei 225 15,360.81 +222.69 +1.47%

S&P/ASX 200 5,209 +28.23 +0.54%

Shanghai Composite 2,299.2 +16.33 +0.72%

Li & Fung Ltd., a supplier of toys and clothing that gets 63 percent of its sales in the U.S., gained 2 percent in Hong Kong.

Osaka Gas Co. advanced to the highest in more than five years after the U.S. conditionally approved a Texas liquefied natural gas project partially owned by the energy supplier.

Tokyo Electric Power soared 16 percent after the Yomiuri newspaper said it will apply to restart reactors.

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The yen climbed versus all 16 major peers after Japan's Economy Minister Akira Amari said further losses in the currency would threaten to negatively affect people and the government's job is to minimize that.

Wagers the dollar will gain against the euro and yen rose last week amid bets the Federal Reserve will signal a tapering of bond purchases. Fed Bank of San Francisco President John Williams said May 16 that quickening economic growth and gains in the job market may prompt the central bank to begin tapering its bond buying as soon as this summer. Williams was one of the first Fed officials to advocate open-ended bond purchases. Philadelphia Fed Bank President Charles Plosser said a week earlier he'd favor a June reduction.

New Zealand's dollar strengthened as its finance minister said home price gains will pressure the Reserve Bank to raise interest rates. "These households heading into quite high debt to buy highly priced houses need to be aware at some stage the RBNZ will increase interest rates, particularly if the housing market keeps growing at rapid rates," English said yesterday in an interview broadcast on Television New Zealand's Q+A.

EUR / USD: during the Asian session, the pair traded in the range of $ 1.2815-50

GBP / USD: during the Asian session, the pair traded in the range of $ 1.5165-00

USD / JPY: during the Asian session, the pair fell to Y102.60

Monday sees a very quiet calendar, with many European centres set to enjoy the Whitsun holidays, although markets remain open. The main focus for the week will be testimony on the Hill from Fed Chairman Bernanke and minutes from the Fed, RBA and BOE. The only event on the European calendar is the release of the Italian March industrial orders numbers. The US calendar is also light, with little on the calendar. At 1330GMT, the MNI Capital Goods Index for the May 17 week will be released, followed by the MNI Retail Trade Index data for the May 18 period. At 1700GMT, the Chicago Federal Reserve Bank President Charles Evans is scheduled to give a speech on the outlook to the CFA Society in Chicago. Late UK data sees the release of the April Markit Household Finance Index numbers at 2300GMT

07:00 United Kingdom MPC Member Tucker Speaks

09:00 France Bank holiday

09:00 Germany Bank holiday

09:00 Switzerland Bank holiday

12:00 Canada Bank holiday

12:30 U.S. Chicago Federal National Activity Index April -0.23