European Summary and Highlights 8 Apr
Labor cash earning for Japan in February arrived at 1.8% y/y, slightly lower than 2% in January but it is well before the strong negotiation results in March and closer to the 2% target.
Labor cash earning for Japan in February arrived at 1.8% y/y, slightly lower than 2% in January but it is well before the strong negotiation results in March and closer to the 2% target. It is a positive sign and supports BoJ's decision to change monetary policy as wage growth should accelerated further after March. However, on Monday Asia session, the theme is potential cease fire between Israel and Hamas and strong gains for metal. With U.S. Treasury Yields higher across the curve, USD/JPY continues to hang around recent high at 151.77, 0.11% higher for the session.
Metals are performing strongly on Monday Asia with gold refreshing new high and Shanghai silver futures hitting limit up. However, despite a potential easing of geopolitical tension, regional sentiment is soft and U.S. major equity indexes have closed any gap higher. The push and pull balanced out each other and see AUD/USD slipping 1 pip to 0.6578, NZD/USD also down 1 pip to 0.6012 while USD/CAD rose 0.09% to 1.3601 as oil stay depressed after opening lower on hopes of ceasefire. Else, EUR/USD is down 0.04% and GBP/USD is down 0.07%.