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Japan Current Account n.s.a. registered at ¥2258B, below expectations (¥2560B) in April

• Prior was +3678 billion
• Seasonally adjusted +2306B vs +2723B prior
• Goods -32.7B vs +516B prior

You can see the effects of the trade war in this data as there was a front-run in March that reversed after the April 2 Liberation Day.

This article was written by Adam Button at www.forexlive.com.

• Q4 was +2.4%
• The preliminary Q1 reading was -0.7%
• Q/Q GDP (not annualized) 0.0% vs -0.2% prelim (+0.6% in Q4)
• Private consumption GDP +0.1% vs 0.0% prelim
• Capex +1.1% y/y vs +1.4% prelim

This is a welcome surprise and should further tilt the Bank of Japan towards hiking rates, though the yen reaction has been minimal.

This article was written by Adam Button at www.forexlive.com.

Bank of England (BoE) rate-setter Megan Greene said on Saturday that disinflation in the United Kingdom is set to continue despite a rise in consumer-price growth in the near term, per Bloomberg.

St Louis Fed President Alberto Musalem spoke to the press on the weekend and was asked about the impact of tariffs on inflation.

He said that it was 50/50 on whether it would cause sustained inflation or inflation for a quarter or two. Critically, he also said there would be ongoing uncertainty around tariffs “right through the summer”. In a best-case scenario he said that the uncertainty goes away in July and they’re in a position to cut in September.

The market is pricing in an 86% chance of a cut in September.

This article was written by Adam Button at www.forexlive.com.

The AUD/USD pair edges higher to around 0.6500 during the early Asian session on Monday. The Australian Dollar (AUD) strengthens against the US Dollar (USD) after US President Donald Trump said that the United States (US) will hold trade talks with China on Monday.

USD/JPY extended its uptrend for two consecutive days, with the major currency pair reaching a new weekly high of 145.09, driven by solid US economic data on Friday.

United States CFTC Gold NC Net Positions climbed from previous $174.2K to $187.9K

Eurozone CFTC EUR NC Net Positions climbed from previous €79.5K to €82.8K

The Dow Jones Industrial Average (DJIA) briefly tested fresh 13-week peaks on Friday, with equities taking a step higher after Nonfarm Payrolls (NFP) jobs data came in stronger than expected.