Wages are front and centre as a driver of a positive feedback loop reinforcing Japanese spending and confidence. Pay rises at Toyota Motor were the biggest in 25 years and the yen drew support from signs of a sustainable revival in Japan’s economy.
Monthly British growth figures are due in the London morning, followed by European industrial production numbers that are expected to turn sharply negative. British monthly GDP is seen rising 0.2% for January after a 0.1% drop in December, although it is hard to read much from such frequent releases.
Markets haven’t fully priced a Bank of England rate cut until August this year, helping to support sterling. The British currency is testing the strong side of a range it’s kept on the euro for nearly a year.
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