Published: 2024-02-06T06:15:29.000Z
USD/JPY flows: Labor Cash Earning Improves
FX Analyst
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Japan December y/y household spending -2.5% vs -2.1% expected
Labour cash earnings +1.0% vs +0.2% prior
The Japanese December Labor cash earning has improved from 0.2% in November to 1%. Despite it is still far from the 2% "sustainable" level, it is good enough for market participants to hope for accelerating wage growth after the spring wage negotiation. Yet, household spending remain depressed for negative real wage restrains household balance sheet. Both the U.S. Treasury and JGB yields retreated across the curve.
USD/JPY followed broad USD movement to trade 0.19% lower at 148.39.