British Business Lobby Cuts GDP Forecasts

Data released on Monday from the Bank of Japan showed that Japan's producer price index fell -4.20% on a year over year basis, marking the biggest drop in over six years since November 2009's -5.00% declines. PPI fell on slower global and domestic demand. On a month over month basis, producer prices fell -0.30% in April, falling for the 11^th month in a row. The declines were seen in falling costs for chemicals, nonferrous metals and communication equipments. The data comes ahead of the first quarter GDP numbers due for release on Wednesday, which is expected to show a 0.30% increase in annualized GDP while rising 0.10% in the first three months of the year

Inflation data from the UK for the month of April will be released today at 0830 GMT. Economists forecast a slowdown in the consumer price index, with expectations of a 0.30% increase in April, down from 0.40% in March on a month over month basis. On a year over year basis, CPI is expected to rise at 0.50%, the same pace as the previous month. Excluding food and energy, the core CPI is expected to rise 1.40%, slower than the 1.50% increase in March. The Bank of England's inflation report released last week showed that the central bank already expects a slower inflation in the coming months and therefore any miss on the estimates is unlikely to see strong reaction from the pound.