- The dollar has been struggling to find traction despite a robust U.S. February employment report on Friday, its losses extending on Monday as a rally in oil prices rekindled demand for the euro and commodity-sensitive currencies.
Fed Governor Lael Brainard, who has emerged as a leader of the Fed's dovish faction, argued for "patience" in raising interest rates. But Fed Vice Chair Stanley Fischer warned that inflation is showing signs of accelerating, words that policymakers often use when signaling a preference for raising rates.
- Japan GDP (seasonally adjusted) for Q4, final, q/q: -0.3% expected -0.4%, preliminary was -0.4%, prior 0.3%
GDP Annualized (seasonally adjusted) for Q4, final y/y: -1.1% expected -1.5%, preliminary was -1.4%, prior 1.3%
- Japan's economy contracted less than initially estimated in the final quarter of 2015 but private consumption remained weak, underscoring the challenges facing premier Shinzo Abe in restoring growth amid intensifying overseas headwinds.
Analysts expect growth to have rebounded only modestly in the current quarter as China's slowdown clouds the outlook for global demand, keeping the Bank of Japan under pressure to expand monetary stimulus, although the returns available from that measure appear to be diminishing.
Sluggish growth could also heighten market speculation that Abe may delay a second consumption tax hike to 10 percent from 8 percent scheduled in April next year, some analysts say.
- BRENT CRUDE TRADES AT $40/BBL FOR FIRST TIME SINCE DEC. 10
Oil prices higher amid further balancing of supply and demand (Apr WTI +5.3% to $37.83, Brent +5.3% to $40.78)
Ecuador's Foreign Minister Guillaume Long said his government will host a meeting in Quito on Friday with Venezuela, Colombia, Ecuador and Mexico "to reach consensus over oil, especially prices."
Reference: Forexlive, Bloomberg, Reuters, MKS Group
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