Expert Analysis of Today's Market

• The dollar was little changed against major currencies on Monday ahead of tomorrow’s European GDP and US inflation data. Today’s trade was dominated by demand for carry trades.


• The EUR/JPY approached a record high boosted by huge Japanese interest-rate disadvantage. Continued advance in equity markets spurred investors to buy higher-yielding assets funded by the yen. Last week the EUR/JPY broke its short-term uptrend; the pair is now between important support and resistance. A break of this trading range will suggest the pair’s future development.

Financial and Economic News and Comments

US & Canada

• Dallas Fed President Richard Fisher and Atlanta Fed President Dennis Lockhart are speaking at separate events later today.

Europe

• UK producer prices, unadjusted for seasonal swings, rose 0.5% m/m and 2.5% y/y in April, the Office for National Statistics said. Core output prices, excluding food, tobacco, beverages and petrol, rose 2.3% y/y.


• Eurozone industrial production rose 0.4% m/m and 3.7% y/y in March, roughly in line with expectations, according to Eurostat data released Monday.

Asia-Pacific

• Japan’s current account surplus in March widened 36.9% from a year earlier to ¥3.32 trillion ($27.6 billion), the Ministry of Finance said Monday.


• Japanese wholesale prices rose more than expected, keeping the Bank of Japan on track for an interest-rate increase later this year. The corporate goods price index rose 2.2% y/y in April, the BOJ said.

FX Strategy Update