The US dollar fluctuated lower in a tight range in the Asian session to bounce in the second session from its highest since May 7 against the Japanese Yen, following developments and economic data released by the Japanese economy and on the threshold of developments and economic data expected on Wednesday by US economy, which includes the reveal of the FOMC meeting minutes.

As of 05:58 GMT, USD/JPY dropped 0.05% to 110.45 from the opening levels of 110.50, after reaching its lowest level at 110.39, while the highest at 110.63.

We followed the Japanese economy, the world's third-largest economy, release its reading for the trade balance index, which showed the surplus shrank to 60 billion yen from 529 billion yen in March, worse than forecasts of a surplus by 230 billion yen, while the seasonally adjusted index showed that the deficit shrank to 111 billion Yen against 153 billion yen in March, contrary to expectations of 122 billion yen.

The annual reading of exports showed that the decline stabilized at 2.4%, unchanged from March's reading, while worse than forecasts of a decline by 1.5%, the annual imports reading showed that growth accelerated to 6.4% Compared to 1.2% in the previous reading for March, beating expectations of a growth to 4.6%.

We also followed japan's reading for the machinery orders index, which showed that growth accelerated to 3.8% from 1.8% in February, in contrast to forecasts of stability at zero levels. while the annual reading for the same index showed a decline by 0.7% versus 5.5% in the previous annual reading for February, which also beat expectations of a 3.5% decline.

On the other hand, investors are currently waiting for the (FOMC) members, James Bullard, speech about the US economic outlook and monetary policy at the Foreign Correspondents' Club of Hong Kong and the speech of New York Federal Reserve Chairman John Williams at a press conference about US homeownership at the Federal Reserve Bank of New York.

This comes hours before the release of the minutes of the FOMC meeting that was held at the end of April and early May, in which the monetary policymakers at the Federal Reserve agreed to keep rates between 2.25% and 2.50% for the third consecutive meeting. Amid a move to cut back on bond repurchases before the end of the program by September following the adoption of the patience policy in raising rates.

The British economy released at 08:30 GMT, its reading for the monthly PPI, which rose by 1.1% in April, according to experts' forecasts of a 1.1% rise, higher than the previous reading which was revised to 0.8% decline from 0.2%, this statement is positive for the British pound.

The British economy released at 08:30 GMT its annual reading for April's consumer price index, which rose by 2.1%, below expectations of a 2.2% rise, better than the previous reading of 1.9%.

The annual core reading for the same index, rose by 1.8%, below expectations of a rise by 1.9%, near the previous reading of 1.8%, which is considered negative for the British pound.

The Japanese economy released its reading for the trade balance index, which showed the surplus shrank to 60 billion yen from 529 billion yen in March, worse than forecasts of a surplus by 230 billion yen, while the seasonally adjusted index showed that the deficit shrank to 111 billion Yen against 153 billion yen in March, contrary to expectations of 122 billion yen.

The annual reading of exports showed that the decline stabilized at 2.4%, unchanged from March's reading, while worse than forecasts of a decline by 1.5%, the annual imports reading showed that growth accelerated to 6.4% Compared to 1.2% in the previous reading for March, beating expectations of a growth to 4.6%.