The Japanese yen has edged higher on Monday, as the pair trades in the mid-102 range. On the release front, Japanese Final GDP jumped 1.6% in Q1. Current Account posted a surplus for the first time in eight months. Monday's highlight is Tertiary Industrial Activity, with the markets bracing for a sharp decline in May. In the US, there are no releases on Monday.
Key Japanese releases continue to impress. Final GDP soared 1.6% in Q1, a huge improvement from the weak gain of 0.2% in Q4. The estimate stood at 1.4%. Current Account also looked sharp, posting a surplus for the first time since September. The indicator came in at 0.13 trillion yen, which was short of the estimate of 0.23 trillion. The strong numbers have reinforced the BOJ's contention that the improving economy will be able to weather the sales tax hike which took effect in April.
In the US, employment numbers were solid late last week. Unemployment Claims and Nonfarm Payrolls, both key indicators, met market expectations and helped the dollar hold its own against the euro. Unemployment Claims came in at 312 thousand, slightly above the estimate of 309 thousand. Nonfarm Employment Change met modest expectations on Friday, adding 217 thousand new jobs. The estimate stood at 214 thousand. The Unemployment Rate stayed pegged at 6.3%, beating the estimate of 6.4%.