The Japanese Yen (JPY) edges lower against its American counterpart during the Asian session on Wednesday, though it remains close to over a one-month peak touched the previous day.
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Rengo is Japan’s largest union.
The head of the organisation says he agrees with the Bank of Japan that is wage hike momentum in Japan’s regions.
This article was written by Eamonn Sheridan at www.forexlive.com.
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With markets fully pricing in an interest rate hike by the Bank of Japan (BoJ) on Friday, the head of Rengo – Japan’s largest national trade union center said Wednesday that he agrees with the BoJ there is wage hike momentum in Japanese regions.
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China’s Lunar New Year, marking the start of the Year of the Snake, falls on Wednesday, January 29.
The official public holiday spans 8 days, from January 28 (New Year’s Eve) to February 4.
During this period, many businesses and government offices close, allowing people to travel home for family reunions. Celebrations traditionally continue for 16 days, culminating with the Lantern Festival on February 12.
With this long holiday comes a large demand for cash (more on this below if you want it).
The People’s Bank of China is in preparation mode, injecting funds today for 14 days rather than the usual 7 days:
The People’s Bank of China (PBOC) injects a large amount of funds into the financial system before the Lunar New Year mainly to address seasonal liquidity demands. Here’s why:
1. Increased Cash Demand
2. Corporate Demand for Funds
3. Bank Liquidity Tightening
4. Preventing Volatility in Financial Markets
5. Supporting Economic Growth & Confidence
This article was written by Eamonn Sheridan at www.forexlive.com.
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The Canadian dollar showed resilience following December’s inflation report, with elevated core measures and higher oil prices helping support comdoll demand.
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Japanese Prime Minister Shigeru Ishiba will emphasize strong wage growth surpassing inflation as a key element of his economic revival strategy in an upcoming policy speech to parliament, according to government sources.
Ishiba plans to challenge Japan’s historically low wage growth expectations and encourage businesses to continue the pay raise momentum seen last year. His speech, scheduled for Friday’s opening of the 150-day Diet session, will also highlight efforts to decentralize the economy and unlock regional potential.
Since taking office in October, Ishiba has made regional revitalization a priority ahead of this summer’s House of Councillors election. In parliament, he will seek bipartisan cooperation, as his Liberal Democratic Party (LDP) and Komeito coalition lack a majority in the House of Representatives, making opposition support crucial for passing legislation.
Despite record wage increases last year, rising prices continue to strain household budgets. To address this, Ishiba will commit to efforts to raise the national minimum wage to 1,500 yen ($10) per hour by the end of this decade, up from the current level of just over 1,000 yen.
This article was written by Eamonn Sheridan at www.forexlive.com.
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The Australian Dollar (AUD) remains subdued against the US Dollar (USD) on Wednesday.
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The People’s Bank of China (PBOC), China’s central bank, is responsible for setting the daily midpoint of the yuan (also known as renminbi or RMB). The PBOC follows a managed floating exchange rate system that allows the value of the yuan to fluctuate within a certain range, called a “band,” around a central reference rate, or “midpoint.” It’s currently at +/- 2%.
How the process works:
The previous close was 7.2620
The People’s Bank of China injects 1157bn yuan via 14-day reverse repos in open market operations
This article was written by Eamonn Sheridan at www.forexlive.com.
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EUR/USD ground into a circle on Tuesday, marking in chart churn around the 1.0400 handle as Fiber bids struggle to find direction.
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Trump threatens the EU with tariffs:
This article was written by Eamonn Sheridan at www.forexlive.com.
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The NZD/USD pair attracts some sellers to near 0.5660 during the early Asian session on Wednesday.
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