Makro

EUR/JPY extends its gains for the fourth successive day, trading around 185.40 during the Asian hours on Tuesday. The currency cross appreciates as the Japanese Yen (JPY) struggles following the disappointing release of Japan's Household Spending data.

The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is gaining ground for the second successive day and trading around 98.10 during Asian hours on Tuesday.

The Bank of Japan (BoJ) published the Summary of Opinions from the April monetary policy meeting, with the key findings noted below.

MUFG economists highlight that the Swiss Franc (CHF) has underperformed as the Swiss National Bank (SNB) leans against currency strength and downplays current inflation.

Scotiabank strategists Shaun Osborne and Eric Theoret report the Euro (EUR) is slightly softer versus the Dollar (USD), struggling against resistance in the upper 1.17s as softer European Central Bank (ECB) expectations weigh, partly offset by better risk sentiment.

ING’s Chris Turner notes the Dollar has started the week slightly stronger as hopes for a Middle East ceasefire fade and Oil prices jump. He highlights US April Consumer Price Index (CPI) as the key release, with expectations for higher headline and core inflation.

TD Securities economists expect US inflation data to firm in April, with core Consumer Price Index (CPI) boosted by shelter and airfare components and headline CPI lifted by higher Oil and food prices.

Rabobank’s Senior FX Strategist Jane Foley discusses the Japanese Yen (JPY), noting that expected endorsement from the United States (US) Treasury for recent Ministry of Finance (MoF) FX intervention should support the currency in the near term.