Yen is extending recent rally against European majors and recovers against dollar. Retreat in US stocks provide some support to the currency. DJIA closed -80.61 pts, or -0.45%, down to close at 17977.04 overnight, back below 18000 handle. Comments by Prime Minister Shinzo Abe's economic advisor Koichi Hamada. Hamada said that Yen at 120 against dollar is "considerably weak" and there is "no need" to force inflation back to 2%. And, he noted that 105 would be an appropriate level based on purchasing power parity. USD/JPY turned into sideway pattern since last December and there is no clear momentum for range breakout yet. Today's focus is back on 119.63 minor support. Break would probably extend the sideway pattern with another down leg to below 118.32.
UK inflation data will be a main focus today. CPI is expected to stay at 0.00% yoy in March while RPI is also expected to be unchanged at 1.00% yoy. PPI is expected to be unchanged at -13.5% yoy, PPI output to be unchanged at -1.8% yoy, PPI output core is expected to be unchanged at 0.20% yoy too. Some analysts noted that low inflation won't deter BoE's rate hike and that was seen as temporary due to falling energy prices. And, Fed's timing and pace of policy normalization could be even more indicative on what BoE would do, as BoE's is see as a "light" version. Released from HK, BRC sales monitor rose 3.2% yoy in March. Eurozone industrial production will be released in European session too.
From US, main focus will be on retail sales, which is expected to rise 1.0% in March while ex-auto sales would rise 0.7%. PPI is expected to drop further to -0.9% yoy in March while PPI core would be unchanged at 1.0% yoy. Business inventories are expected to rise 0.3% in February. Dollar index is facing some resistance from 100 handle again. Meanwhile, EUR/USD is held above 1.0461 support. AUD/USD is kept above 0.7532 while USD/CAD is kept below 1.2834. We'd pay attention on whether dollar would turn again to extend recent consolidations.