1. Japanese GDP
2. German PPI
3. Canadian Retail Sales

Japanese Gross Domestic Product (1Q P) (23:50 GMT; 19:50 EST)  
                  (QoQ)  (YoY)   (Deflator)
Consensus:  0.3%  1.1%      -1.3%
Previous:      1.3%  5.4%       -1.6%

Outlook:  The Japanese economy is expected to have continued growing in the first quarter, but at a reduced pace as consumer spending, which accounts for more than half of the economy, slowed after doubling in the fourth quarter.  Spending has remained relatively strong as wages continued to rise and unemployment remained at seven-year lows.  Analysts anticipate the gross domestic product to have expanded 1.1% annualized, slower than US growth of 4.8%.   This will be the fifth consecutive quarter of growth, contributing evidence to the Bank of Japan' of economic expansion balance sheet.  While core prices remain inflationary, the BoJ is expected to raise interest rates from their near zero policy by the end of the year.

Previous:  In the fourth quarter of last year, the economy grew nearly five times faster than the US, at an annualized 5.4% while the US only grew at 1.1%, as exports and domestic spending surged.  Exports jumped 3.5% while imports dropped 0.9%, adding 0.6% to the gross domestic product.  Consumer spending doubled to 0.8% from the previous quarter, while capital spending ascended to 1.7%.  In addition, consumer confidence was near 15-year highs as wages continued to rise and companies increased hiring.  The positive flow of data led the Bank of Japan to end their quantitative easing policy, which will reduce the amount of money the government has pumped into the financial system.  BoJ Governor Fukui has continued to stress that the board will only raise interest rates from near zero once there are consistently healthy inflationary reports.

German Producer Price Index (APR) (06:00 GMT; 02:00 EST)  
                  (MoM)  (YoY)
Consensus:  0.7%  5.8%
Previous:      0.5%  5.9%

Outlook: Analysts expect costs for German firms to have accelerated in April, increasing 0.7% from March prices.  Economists anticipate that high energy costs and commodity prices will continue to put pressure on producers to pass on input fees to consumers.  Inflation in Germany accelerated 0.4% in April, from 0.1%, bringing the annualized measure to 2.0%, at the European Central Bank's upper target.  Economic output in the largest EU member economy grew 0.4% in the first quarter, while the trade balance rose to €14.3B. Investors have placed bets that the risks of higher inflation will lead the ECB to raise interest rates to 2.75% from 2.50% at their June meeting.  However, they may delay a rate hike if the Euro strengthens beyond expectations.

Previous: German producer prices rose to a 24-year high in March as oil and raw material costs continued to increase.  Prices firms paid 0.5% more for industrial products from February.  The acceleration is 5.9% higher than the same month last year.  The increase has been driven by energy prices, which rose 22% as world oil prices reached record levels of more than 60 U.S. dollars a barrel since the middle of last year. The cost of electricity was 24% higher than last March, while natural gas prices rose 29%. Companies are gradually passing these higher costs on to consumers and consequentially contributing to inflation.  The Bank left interest rates unchanged at 2.50% in their previous meeting.

Canadian Retail Sales (MAR) (MoM) (12:30 GMT; 08:30 EST)  
Consensus:   0.6%  
Previous:  -0.4%  

Outlook:  Sales at Canadian retailers is expected to recover from February's slump as lower unemployment, rising housing prices and higher vehicle sales suggest consumers were more confident in turning their earnings back into the economy.  Key to Canadian shoppers spending habits in March was the contraction in the jobless rate to 6.3% of the available work force, a 32-year low.  Further boosting the aggregate wealth of domestic consumers was the continued pace in wage growth, which measured 3.5% on an annualized basis in March.  This puts shoppers well ahead of the 2.2% year-over-year rise in consumer goods.  Further loosening the purse strings was the improvement in the housing market with new house prices accelerating at a 1.0% pace, a 16 year high, while new home starts increased an annual 252,300 units.  Domestic spending, along with business investment, is expected to take over the reins of economic growth from exports as the exchange range continues to diminish the attractiveness of Canadian-produced goods on a more competitive global market.

Previous:  Canadian retail sales unexpectedly fell 0.4% in February, the first decline in 5 months, as a solid decline in auto sales dragged the overall read lower.  New retail auto sales dropped 3.5% for the month with Canadians being repelled from dealerships as gasoline prices continue to soar.  Prices of gas were 18% higher in February from a year before to C$1.09 per liter.  Excluding the vehicle component however, retailers' sales actually rose 0.3%, suggesting the decline was largely isolated.  The Bank of Canada monetary group recognized this fact when they met on April 25 and decided to raise the country's benchmark lending rate to 4%.  With consumer wealth the highest in years and equipped with the confidence to use it, capacity and inflationary pressures are prominently on the stage.

Richard Lee is a Currency Strategist at FXCM.