• The dollar touched its highest level in nearly eight months versus the yen on Monday, supported by expectations for continued monetary policy divergence between the Federal Reserve and the Bank of Japan.
The dollar rose to as high as 114.735 yen at one point, its highest since mid-March, its rise having gained added steam after breaching technical resistance at levels near 114.50 yen.
Later, the dollar pared some of its gains and was trading at 114.35 yen, up 0.3 percent on the day.
The dollar index, which measures the greenback against a basket of six major currencies, last stood at 94.919, trading within sight of an Oct. 27 peak at 95.150, its highest point since July 20.
• Bank of Japan (BOJ) Governor Haruhiko Kuroda said on Monday that economic growth is gathering momentum and increasing the chances of inflation hitting his 2 percent target, reinforcing market expectations that no additional stimulus is forthcoming.
• Japan’s services sector grew at the fastest pace in more than two years in October as new orders accelerated sharply, suggesting the economy is picking up momentum in the fourth quarter.
The Markit/Nikkei survey released on Monday showed its Japan Services Purchasing Managers Index (PMI) rose to a seasonally adjusted 53.4 from 51.0 in September.
The new business index also expanded rapidly to 53.8 in October from 52.0 in the previous month, the fastest pace since May 2013.
• President Donald Trump, charging "Japan has been winning" on trade in recent decades, said he would push for more reciprocal trade with Washington's close U.S. ally — but in a friendly way.
Trump was speaking in Tokyo on the second day of a 12-day Asian trip expected to be dominated by North Korea and trade.
• If the Republican tax plan passes basically intact, investment firm Invesco recently predicted it'll satisfy Wall Street and drive stocks higher.
Moreover, there's one particular element in the proposal which could have the biggest positive impact: A permanent 20 percent corporate tax rate, a deep cut from the current 35 percent level.
Invesco's global strategist Kristina Hooper believes the odds are high the new figure will stick.
"I give this a more than 50 percent chance of surviving. To me, this is the centerpiece of the legislation," Hooper said recently on CNBC's "Futures Now."
• Sacked Catalonia leader Carles Puigdemont and four associates turned themselves in to Belgian police on Sunday, following Spain’s issuing of an arrest warrant for rebellion and sedition.
• Crown Prince Mohammed bin Salman, also known as MBS, has tightened his grip on power through an anti-corruption purge by arresting royals, ministers and investors including prominent business billionaire Alwaleed bin Talal and the head of the National Guard, Prince Miteb bin Abdullah.
RBC Capital Markets said in a note that although the “purge represents a stunning political development in Saudi Arabia,” it expected “no immediate changes” in the oil policy of Saudi Arabia, which is the world’s biggest exporter of crude oil.
Reference: Reuters
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