S&P increased Japan's debt rating to AA from AA- Key support in USDJPY remains at 117.60. Stocks post new highs on most indices, Nikkei 225 still lagging behind though.

Overnight News Bullets

• FR Consumer Spending March, out at 0.7% vs 0.3% exp. (YoY) out at 6.3% vs 5.8% exp.

• JN Convenience Store Sales (YoY) March, out at -1.4% vs a prior reading of -1.1%.

• JN Supermarket Sales (YoY) March, out at -1.5% vs -1.6% exp.

• SZ Product & Import Prices March, out at 0.3% in line with exp. (YoY) 2.4% vs 2.3% exp.

• IT Trade Balance March, out at -864.0M vs -1300M exp.

• UK Retail Sales March, out at 0.3% vs 0.5% exp. (YoY) out at 4.8% vs 4.7% exp.

• CA Retail Sales Feb, out at 0.1% vs -0.2% exp. Less Autos out at 1.0% vs 0.5% exp.

• NZ Visitor Arrivals March, out at -1.0% vs a prior reading of 6.5% exp.

• AU PPI Q1, out at 0.0% vs 0.6% exp. (YoY) out at 2.8% vs a prior reading of 3.5%.

Markets

• FX: JPY finding strength in late Asia, but remains range bound in the broader picture.

• Fixed Income: Fixed Income remains choppy ahead of US growth data this week.

• Stocks: Stocks remain strong with Nikkei giving little direction ahead of European opening.

• Commodities: Precious  metals lacking short term direction as the dollar remains choppy.

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What's going on?

• JPY gains across the board after S&P lifted Japan's debt rating one level to AA from AA-, the first increase by the company since 1975. USDJPY falls from to 118.20's in Asia. Key support still remains at 117.60 if further acceleration is to be seen.

• We expect the week to start of range bound both for FX and Fixed income as Q1 US GDP is to be the main focus for the month to come. 1.3667 in EURUSD is still what investors are keeping the eye on.

• New highs printed for most broader indices on Friday. Nikkei 225 remains the laggard - severe downside risk upon a close below the 1700 area.

FX