It was a fairly subdued day for major FX. Small gaps shown in very early trade were soon covered and subsequent ranges were not large

USD/JPY was the most notable, trading to above 131.00 from early in the session lows circa 130.50. We had February Services PPI data from Japan, for February, which rose above the January pace. The Bank of Japan noted in the release that wage gains seem to be broadening, albeit only gradually.

The other data of note were the profits at industrial firms for January – February (note that combined January and February data are published for most Chinese economic indicators to flatten out distortions from the shifting timing of the Lunar New Year) in China plunged. Revenues dropped, and elevated costs weighed on margins.

Thee were a few central banker comments over the weekend; Kashkari from the Federal Reserve, and the ECB’s Schnabel and de Guindos. See bullets above.

Asian equity markets:

  • Japan’s Nikkei 225 +0.31%

  • China’s Shanghai Composite -0.96%

  • Hong Kong’s Hang Seng -1.62%

  • South Korea’s KOSPI -0.35%

  • Australia’s S&P/ASX 200 +0.18%

Bank of England Governor Bailey is speaking Monday UK time:

Bailey