USD/JPY

The yen jumped suddenly against the dollar on Monday morning, after USD/JPY hit ¥160 earlier, its weakest level since April 1990, with traders citing yen-buying intervention by Japanese authorities to boost the currency. The Japan Ministry of Finance has not confirmed the intervention, with Japan closed for a holiday on Monday.

Eurozone economic sentiment

Eurozone economic sentiment is forecast to rise to 96.9 in April from 96.3 the previous month. This will be released at 10 a.m. Later, at 1 p.m., the German consumer price index. Economists anticipate a 2.3% rise in April year-on-year (YoY) after a 2.2% rise in March. An indicator that will be closely watched in the context of sticky inflation is a lot stickier than what central bankers around the world had anticipated.

The US dollar

The USD will be tested this week by two major events. First, the Fed. There is virtually no chance that Jerome Powell will announce the first Fed rate cut since March 2020. The market now anticipates an initial rate cut in the second half of 2024. For the past two weeks, the dollar basket has been trading above 105. Any hawkish comment or indication that could be interpreted as a further delay to an initial rate cut could send the dollar basket testing the highs of November 2023. This week also, will be released a series of employment indicators in the US. On Wednesday, Automatic Data Processing (ADP) employment changed and Job Openings and Labor Turnover Survey (JOLTs) job openings were announced, followed on Friday by April non-farm payrolls.

BHP Group

BHP Group is considering improving its offer for Anglo American, according to Reuters. Last week, BHP offered $39 billion for Anglo American. Anglo very quickly rejected the offer, saying it significantly undervalued the miner and its future prospects. BHP has until May 22 to come back with a formal offer for Anglo American.

Philips

Philips has agreed to pay $1.1 billion in a settlement of personal injury cases in the US linked to the recall of ventilators used to treat sleep apnea. It booked a provision of €982 million in its Q1 results. It therefore registered a €824 million loss in the period, against expectations for a €166 million profit. Philips reiterates its 2025 guidance.

Tesla

According to Reuters, the EV maker has cleared some key regulatory hurdles with Chinese authorities relative to its self-driving software and was able to reach an agreement with Baidu. Tesla will use the Chinese tech giant's mapping license for data collection on China's public roads.