1. USD/JPY hits 2-week high

The dollar rose to a two-week high against the yen on Monday, with the market breathing a sigh of relief after a closely watched two-day U.S.-Japan summit held over the weekend was seen to have ended smoothly.

A senior Japanese government spokesman said U.S. President Donald Trump and Japanese Prime Minister Shinzo Abe did not discuss currency issues and that Trump did not request a bilateral trade deal.

There was concern prior to the summit that Trump would reiterate accusations that Japan was one of several countries devaluing their currencies to the disadvantage of the U.S.

The dollar was up around 0.5% against the yen at 113.76 in early New York morning hours. The pair rose to as high as 114.17 during the Asian trading session, a level not seen since January 30.

2. 'Trump trade' returns

In Asia, markets climbed to their highest in more than 18 months, as recent actions by President Donald Trump helped soothe investor worries about ties between the U.S. and its key Asian trading partners.

Meanwhile, European equities advanced in mid-morning trade, with the benchmark index heading for a more-than-one-year high on optimism over President Donald Trump’s softer stance toward his key Asian trading partners.

Elsewhere, U.S. stock market futures pointed to a higher open on Monday morning, on pace to continue their recent run of record-highs, as investors bet that the U.S. president's tax reform plans will boost economic growth and corporate profits.

3. Oil is lower before reports

Oil prices edged lower on Monday, as investors await a monthly report from the Organization of Petroleum Exporting Counties for further evidence that crude producers are adhering to planned output cuts.

U.S. crude was down 30 cents, or around 0.5%, to $53.59, while Brent shed 28 cents to $56.42 a barrel.

OPEC is scheduled to publish its first assessment of its January production in its monthly oil market report at 12:05 GMT on Monday.

Oil prices rallied on Friday on reports that the oil cartel has delivered more than 90% of pledged oil output curbs in January, making a strong start to implementation of its first production cut in eight years.

4. EU raises 2017 growth, inflation forecasts

The European Commission raised its forecasts for growth and inflation for the European Union on Monday, despite what it called 'exceptional risks' from Brexit, upcoming European elections and the new administration in the U.S.

In its new winter forecast, the EC said it now expects the euro area economy to grow by 1.6% this year, up from 1.5% in its autumn forecast. Growth is expected to accelerate to 1.8% in 2018, up from 1.7%.

The Commission raised its euro zone inflation forecast to 1.7% this year from 1.4% previously.