Economic calendar (GMT0):

(Time/ Region/ Event/ Period/ Previous/ Forecast/ Actual)

02:00 Japan Manufacturing PMI (Preliminary) May 48.2 47.6

04:30 Japan All Industry Activity Index, m/m March -0.9% Revised From -1.2% 0.7% 0.1%

05:00 Japan Leading Economic Index (Finally) March 96.8 98.4 93.3

05:00 Japan Coincident Index (Finally) March 110.7 111.2 111.1

07:00 France Manufacturing PMI (Preliminary) May 48 48.8 48.3

07:00 France Services PMI (Preliminary) May 50.6 50.6 51.8

07:30 Germany Manufacturing PMI (Preliminary) May 51.8 52 52.4

07:30 Germany Services PMI (Preliminary) May 54.5 54.6 55.2

08:00 Eurozone Services PMI (Preliminary) May 53.1 53.3 53.1

08:00 Eurozone Manufacturing PMI (Preliminary) May 51.7 51.9 51.5

09:30 U.S. FOMC Member James Bullard Speaks

The U.S. dollar traded higher against the most major currencies ahead of the release of the U.S. preliminary manufacturing PMI data. The U.S. preliminary manufacturing PMI is expected to rise to 51.0 in May from 50.8 in April.

The euro traded lower against the U.S. dollar after the release of the PMI data from the Eurozone. Markit Economics released its preliminary manufacturing purchasing managers’ index (PMI) for the Eurozone on Monday. Eurozone’s preliminary manufacturing PMI declined to 51.5 in May from 51.7 in April. Analysts had expected the index to increase to 51.9.

Output in the manufacturing sector showed a softer growth.

Eurozone’s preliminary services PMI remained unchanged at 53.1 in May. Analysts had expected the index to climb to 53.3.

New business in the services sector rose at the weakest pace since January 2015.

“A disappointing flash Eurozone PMI for May adds further to the suggestion that the robust pace of economic growth seen in the first quarter will prove temporary,” Markit’s Chief Economist Chris Williamson said.

“The forward-looking indicators also suggest that growth is more likely to weaken further than accelerate,” he added.

Germany’s preliminary manufacturing PMI climbed to 52.4 in May from 51.8 in April, beating forecasts of a rise to 52.0. Germany’s preliminary services PMI was up to 55.2 in May from 54.5 in April. Analysts had expected index to increase to 54.6. The rise in the manufacturing and services PMI was driven by a backlogs and increased new orders.

France’s preliminary manufacturing PMI rose to 48.3 in May from 48.0 in April. Analysts had expected the index to rise to 48.8. The manufacturing index was driven by a slower decline in new orders and in input prices.

France’s preliminary services PMI climbed to 51.8 in May from 50.6 in April. Analysts had expected the index to remain unchanged at 50.6. The services index was driven by rises in new orders, employment and input prices.

The European Central Bank (ECB) chief economist Peter Praet said in an interview with the Portuguese newspaper Publico on Monday that the central bank could cut its interest rates further but it would depend on conditions.

The British pound traded lower against the U.S. dollar in the absence of any major economic data from the U.K.

EUR/USD: the currency pair fell to $1.1200

GBP/USD: the currency pair declined to $1.4460

USD/JPY: the currency pair dropped to Y109.31

The most important news that are expected (GMT0):

13:45 U.S. Manufacturing PMI (Preliminary) May 50.8

14:00 Eurozone Consumer Confidence (Preliminary) May -9.3 -9

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