JPY: Rengo Demands, Ongoing Market Tumult Drives USD/JPY to Test Support
Mar-06 08:52
- USD/JPY is showing through the Tuesday low, Y148.10, at typing. A clean break below here puts prices at new YTD lows and the lowest level since October. Y146.95, a Fibonacci retracement, is the next key support.
- The Rengo pay tally data was an upside surprise - we knew that unions would push for a wage rise that "at least" matched last year's multi-decade high in the pace of wage rise, and they're demanding a faster rise this year: 6.09% from 5.85%. Rengo are one of the largest contributors to the annual Shunto wage negotiation round - so a solid bellwether for Japanese industry more broadly.
- We noted earlier that the headlines are already making waves in JPY rates space: JGB futures prices have hit new pullback lows and the 2s10s curve is at its steepest in nine months - helping underpin this JPY rally.
- In the crosses, this means EUR/JPY has reversed hard off the 100-dma resistance (Y161.41), which may put an end to the rally off last week's lows. A close below Y159.75 would confirm as such.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
EGB SYNDICATION: Croatia 12Y EUR Benchmark: IPT
Feb-04 08:52
- EUR Benchmark 12Y Fixed (Feb. 11, 2037) MS+120 Area
- Coupon: Annual, act/act ICMA
- Settlement: Feb. 11, 2025
- ISIN: XS2997390153
- Bookrunners: ERSTE, IMI - Intesa Sanpaolo, ING (B&D), JPM, MS
- Timing: May price today.
Details as per Bloomberg
USD: Paring some Overnight gains
Feb-04 08:50
- The Dollar is still paring some gains going int the European session, cross asset markets have stabilised somewhat, and the Swissy in back in the green vs the USD, albeit closer to flat.
- The USDJPY is slowly drifting back towards the 155.00 figure, but for now trades pretty much at today's mid 80 pips range, at 155.15.
SEK: Little FX Reaction To Riksbank Minutes
Feb-04 08:45
Little immediate reaction in SEK to the Riksbank’s January minutes, with the krona already strengthening a little against the EUR and USD ahead of the release.
- Overall, there remain “nuances” in views across the Executive Board, but the broad strokes of the minutes seem to align with the cautious/non-committal policy statement guidance seen last week.
