Themes

· General mood is “risk off”

· Chinese Trade 325.1bln, largely as expected

· Wires: ECB’s Rehn: Wants a July rate hike ad zero rates by Autumn

What’s Moving

A very quiet open to Monday morning trade in Asia, with light Dollar buying seen, mainly against the CHF and CAD, but with a notable lack of aggression. The Hong Kong holiday impacted on volumes over the course of the day and the upshot were tight ranges across all the majors.

Japan’s Monetary Policy Meeting Minutes, were largely shrugged off, being well flagged.

It may have been a grind of a day, but the dollar posted new recent highs against the AUD, NZD, CHF and CAD. Afternoon trade saw USD/JPY breach 131.00, largely as a catchup after earlier session dollar strength against the other majors.

Expect continued quiet trade tonight in Europe, with most players sidelined ahead of U.S. CPI numbers due Tuesday night.

Data tonight includes:

· French Trade (E: -11.2bln)

· Canadian Building Permits (E: 3.4%)

· U.S. Wholesale Inventories (E: +2.3%)