1. UK BRC Retail Sales Monitor
2. Bank of Japan Monthly Report
3. German ZEW Survey

UK BRC Retail Sales Monitor - Same Store (YoY) (MAR) (23:01 GMT; 19:01 EST)
Consensus: 1.1%
Previous:  0.6%

Outlook:  No official estimates have been released on how the British Retail Consortium's (BRC) sales monitor will perform for the month of March on an all-store basis.  Within the same store, sales volumes are expected to shoot up by 1.1%.  In the past, however, the all-stores figure has been dramatically influenced by purchasing during the Easter holiday.  This year, Easter will be arriving three weeks later than last year, which could have an intensely negative effect on March's year over year figure.  Furthermore, unemployment claims in the U.K. are expected to have risen to a three-year high in March after companies began letting employees go following 2005's economic slowdown.  Higher unemployment in March could very well translate into lower spending enthusiasm.  If March's sales gains come in as weak as January's and February's, the first quarter will be a disappointing one for growth
on consumption.     

Previous:  In February, member-stores of the BRC saw a 3.5% increase in total sales from the same time a year ago.  This was only a slightly faster rate of increase than the previous month when total sales grew by 3.4%.  Sales growth in the same store from year to year picked up to 0.6% versus the previous month's all time low of 0.2%.  In any case, growth in sales this year has been weaker than retailers would like. Much of the drop in sales growth in early 2006 is attributed to shoppers' disillusionment after holiday season clearance sales came to an end.  Weak consumer expenditures in both January and February are a continuation of last year's trend when spending became a drag on the economy by dawdled along at its slowest pace in 13 years.

BoJ Monthly Report (06:00 GMT; 02:00 EST)
Consensus: n/a
Previous: n/a

Outlook:   Economists are expecting the Bank of Japan to use its April 10-11 meeting to voice its confidence that deflation in the world's second largest economy has come to an end.  Although no immediate increases are anticipated in the interbank overnight loan rate-the Bank's target rate-an interest rate increase is expected as early as July of this year for several reasons.  For the first time in five years, the central bank announced a change in monetary policy in March. Starting in April, the Bank will discontinue its practice of flooding the economy with excess cash by reducing the amount of reserves it makes available to lenders to about 6 trillion yen from 30 trillion yen over a few months.  Once these excess reserves are absorbed, it will not be long before the BoJ begins to tighten rates.  Earlier this month, the Tankan business confidence survey revealed that non-manufacturers plan to increase spending by 1.6% this year.  As business investment picks up pace, unemployment could start to fall and wages may begin trending higher, strengthening the case for higher interest rates.  An interest rate hike will most likely have an immediate result of more rapid consumption and investment as both consumers and businesses attempt to take advantage of rates before they get too steep.  Given that the central bank cannot afford to make more than one interest rate hike this year, some economists are betting on the increase to come in the fourth
rather than third quarter.    

German ZEW Survey (APR) (09:00 GMT; 05:00 EST)
                   (Current Situation) (Econ. Sentiment)
Consensus:          -2.0                  65.5
Previous:              -8.4                  63.4

Outlook:  The German ZEW survey is expected to have rebounded slightly to 65.5 this month as investor sentiment remains relatively optimistic on the strength of the Germany economy.  Economists attribute the forecasted rise to the acceleration in February's exports.  Sales abroad increased 4.6%, the highest in almost four years, on boosted demand for cars, chemicals, and machines.  While overseas orders amplified, the trade surplus concurrently rose to €13.1 billion in February, leaving businesses with higher sales and profits. Additionally, confidence in the economy's revival has found firm support in the IFO's report of business confidence, which was at its highest level in 15 years.  Given this lofty level of sentiment, investors are hoping that companies will in turn boost wages and hire more employees with the extra revenue.  Traders will be watching this release closely to confirm a June rate hike by the European Central Bank.

Previous:   In March, the German ZEW survey dropped for the second month to 63.4, from the two year high of 71 seen in January.  Investors expressed concern over higher interest rates and taxes, which could slow economic growth in Europe's largest economy.  Analysts predict that the European Central Bank may raise interest rates up to 3.25% by the end of the year.  In addition, Chancellor Angela Merkel is expected to raise sales taxes from 16% to 19% next year, issuing an additional burden to consumers.  These costs will be another pain in the sides of consumers and firms who are already dealing with resurging energy prices. In addition, employers have been reluctant to boost wages.  The ECB left interest rates unchanged at 2.50% last week, but economists have increased their bets that the bank will hike benchmark rates to 2.75% in June.

Richard Lee is a Currency Strategist at FXCM.