The Japanese Yen (JPY) is under wide downward pressure in line with a modest recovery in Variable Income Markets, BBH FX analysts report.
The BOJ is unlikely to harden politics more than expected
“The largest trade union group in Japan, Rengo, said an average salary increase of 5.46%. That is the highest level since 1991 and exceeded last year’s initial reading of 5.28%. However, the salary increase was more modest than anticipated, since the members were asking for an average salary increase of 6.09%this year.”
“As such, it is unlikely that the BOJ will harden the policy more than is currently discounted, which represents an obstacle to the JPY. The swap market continues to imply less than 50 basic points of rates of rates in the next twelve months.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
