Wage negotiations are underway this week. It is already clear that major corporations are to make pay raises of at least 5%, with one of the largest hikes ever to take place at Toyota. The average increase across all companies is expected to be 4.2-4.3%. The government has previously urged companies to increase wages, which is expected to stimulate consumer activity and inflation.
At the same time, the Nikkei agency points out that, according to reports from people connected to the BoJ, the bank is expected to discuss an exit from negative interest rates next week. In addition to this, there was earlier speculation about abandoning the YCC (curve control) programme. In view of this, the USDJPY pair is capping gains, although today's rebound in the pair was puzzling with a fairly weak dollar. Information on the outcome of wage negotiations is expected to be available to the public this Friday.
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile app
The USDJPY is capping gains and is near yesterday's close. Interestingly, US yields are rising, which is theoretically good for the dollar, but in the broad market the dollar is rather losing. Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
