4 Mar 2014
Flash: Volatility would increase around USD/JPY - BTMU
FXStreet (Barcelona) - Derek Halpenny, European Head of Currency Strategy at the Bank of Tokyo Mitsubishi UFJ, suggests volatility would likely affect he USD/JPY in the near term.
Key Quotes
"The only other news from Asia was the release of earnings data from Japan. While overall wages fell 0.2% on an annual basis in January, base wages actually increase by 0.1%, for the first time in 22mths."
"However, the good news came with a warning – base wages have been revised lower every month over the past year. But activity is certainly improving with hours worked up 1.4% from a year earlier and the number of full-time employees up 1.2%."
"A tightening labour market, if sustained, will inevitably lift nominal wages. Remember though, inflation currently at 1.3%, means real wages are falling hard and hence it is increasingly urgent for nominal wages to rise."
"BOJ Governor Kuroda, speaking in the Diet today remained very optimistic stating that company and household inflation expectations were changing. USD/JPY is up notably today but is being increasingly driven by events in Russia and hence is likely to remain volatile over the short-term."
Key Quotes
"The only other news from Asia was the release of earnings data from Japan. While overall wages fell 0.2% on an annual basis in January, base wages actually increase by 0.1%, for the first time in 22mths."
"However, the good news came with a warning – base wages have been revised lower every month over the past year. But activity is certainly improving with hours worked up 1.4% from a year earlier and the number of full-time employees up 1.2%."
"A tightening labour market, if sustained, will inevitably lift nominal wages. Remember though, inflation currently at 1.3%, means real wages are falling hard and hence it is increasingly urgent for nominal wages to rise."
"BOJ Governor Kuroda, speaking in the Diet today remained very optimistic stating that company and household inflation expectations were changing. USD/JPY is up notably today but is being increasingly driven by events in Russia and hence is likely to remain volatile over the short-term."