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·       The euro was supported by signs of stability in Italian politics and the dollar maintained an uptrend against the yen after a strong U.S. jobs report sparked bets of three more U.S. rate hikes by the end of year.

In early Asian trade, the euro traded almost flat at $1.1687 , having reached $1.1745 the previous day, its highest level since May 24.

The dollar traded at 109.95 yen, up 0.1 percent and extending its recovery from a five-week low of 108.115 yen touched on Tuesday.

·       Strong U.S. employment data published on Friday revived bets that the Federal Reserve will raise interest rates three more times this year.

The Fed is widely expected to raise rates at its policy meeting next week, following up on a rate hike in March.

“The U.S. jobs data was really strong. The Fed could indicate it will raise rates four times this year, including an expected hike in June and one in March,” said Yukio Ishizuki, senior currency strategist at Daiwa Securities.

“That would widen interest rate differentials between U.S. and Japan and should support the dollar against the yen,” he added

·       U.S. Vice President Mike Pence will travel to Brazil and Ecuador at the end of June in an effort to strengthen trade and security ties with countries grappling with growing numbers of refugees fleeing Venezuela’s economic crisis, his spokeswoman said on Monday.

Pence had originally planned to travel to Brazil in May, but postponed the trip because of the intense focus by the White House on upcoming talks with North Korean leader Kim Jong Un.

·       Japan’s household spending unexpectedly contracted in April and services sector activity slowed in May, figures out on Tuesday showed, raising the possibility of the economy falling into recession this quarter.

Economists say it is too early to definitively say a recession is the most likely outcome, but they warn that the chance of one will increase if domestic demand indicators do not improve before the end of June.

·       Bank of Japan Deputy Governor Masazumi Wakatabe said on Tuesday he did not think the central bank would immediately start selling government debt once it decides to exit from quantitative easing.

Wakatabe said consumer prices were still distant from the BOJ’s 2 percent price target. He also reiterated his opposition to the BOJ’s buying U.S. Treasuries for monetary policy.

·       Singapore on Tuesday unveiled a commemorative medallion ahead of next week’s summit between the U.S. and North Korean leaders in the wealthy city-state, carrying the inscription ‘World Peace’ in large letters on one side.

·       Mexican firms will need to cut deals with suppliers and consider buying goods elsewhere once a conflict over U.S. steel and aluminum import tariffs starts to bite, even as consumers are seen ultimately picking up the tab from any higher prices.

·       Australia’s central bank left interest rates at record lows on Tuesday, as expected, and expressed confidence in the economy’s ability to extend its 26-year run without recession, thanks to stronger exports and government spending.

·       Oil prices rebounded on Tuesday on expectations that inventories in the United States may decline, but increasing U.S. production and concerns that OPEC may raise output continue to weigh on sentiment.

Brent crude futures LCOc1 added 25 cents, or 0.33 percent, to $75.53 a barrel by 0717 GMT, after settling down 2 percent at $75.29 on Monday.

U.S. West Texas Intermediate (WTI) crude CLc1 was up 44 cents, or 0.68 percent, at $65.19 a barrel. It finished the previous session 1.6 percent lower at $64.75.

Reference: Reuters