• The dollar eased against the yen on Thursday, losing some momentum after hopes of detente in East Asia provided the spark for its largest daily gain in six months the previous session.
The dollar fell 0.3 percent to 106.52 yen, giving back some gains after having surged 1.43 percent on Wednesday, its biggest rise since Sept. 11 of last year.
The euro rose 0.2 percent to $1.2329. On Wednesday it had lost 0.75 percent and pulled away from the previous day’s five-week high of $1.24765.
• Thursday will probably be the most eventful day for the US dollar this week, from a data perspective at least. The core PCE price index, which is the Fed’s preferred inflation measure, as well as personal income and spending figures are all due for release at GMT. While forecasts point to a robust set of data, there are reasons to be hesitant to trust these projections, which implies the greenback may be at risk from these releases.1230
• Japan has sounded out the North Korean government about a bilateral summit, and Pyongyang has discussed the possibility of a leaders' meeting with Japan, Japan's Asahi newspaper said on Thursday.
"The Japanese government has expressed a wish to host a leaders meeting, via the General Association of Korean Residents in Japan," or Chongryong, Pyongyang's de facto embassy in Japan, the Asahi quoted the briefing papers as saying.
• Japan’s retail sales rose in February as shoppers spent more on food, drinks and clothes, suggesting rising wages and a tight labour market are supporting consumer confidence.
The 1.6 percent annual increase in retail sales in February was slightly less than the median estimate for a 1.7 percent annual increase and follows a revised 1.5 percent annual increase in January.
Rising consumer spending makes it more likely that consumer prices will rise in the future, which could help the Bank of Japan reach its elusive 2 percent inflation target, although its ultra-easy monetary policy will still be in place for some time.
• China warned the United States on Thursday not to open Pandora’s Box and spark a flurry of protectionist practices across the globe, even as Beijing pointed to U.S. goods that it could target in a deepening Sino-U.S. trade dispute.
China could target a broad range of U.S. businesses from agriculture to aircraft, autos, semiconductors and even services if the trade conflict escalates, the official China Daily newspaper said in an editorial on Thursday.
China’s biggest U.S. imports are aircraft and related equipment, soybeans and autos, with the total bill about $40 billion last year.
• Growth in China’s manufacturing sector likely picked up slightly in March as authorities lifted winter industrial pollution restrictions and steel mills cranked up production as construction activity swings back into high gear.
The official manufacturing Purchasing Managers’ Index (PMI) is expected to have risen to 50.5 in March, from February’s 50.3, according to a median forecast of 29 economists in a Reuters poll. The 50-mark divides expansion from contraction on a monthly basis.
• Oil prices rose on Thursday as the producer cartel OPEC and other suppliers look set to continue withholding output for the rest of the year and potentially into 2019.
U.S. WTI crude futures CLc1 were at $64.63 a barrel at 0729 GMT, up 25 cents, or 0.4 percent, from their previous settlement.
Brent crude futures LCOc1 were at $69.76 per barrel, up 23 cents, or 0.3 percent.
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