Mixed Feelings

The spring wage decision will reflect cyclical factors rather than a structural shift leaving little reason for the BoJ to consider contractionary action. The Bank of Japan and financial markets are eagerly awaiting the Shunto wage decision for Japan’s largest trade confederation RENGO, which is due in. In our view, the result will likely be […]

EURJPY jumped to its highest since January 1992 last week But corrected lower after suspected Japanese intervention Oscillators weaken but remain above neutral zones EURJPY has been in a steep uptrend since the beginning of the year, storming to consecutive multi-year highs. In the near term, the pair experienced a strong pullback following a suspected currency intervention […]

Next week’s ECB meeting is set to see few, if any, new policy signals, given the limited new information that has been released since the December meeting. We expect President Lagarde to confirm that the next policy rate change is most likely a cut, which may happen in summer. It remains to be seen whether […]