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1 May 2013
Forex Flash: Dollar holds JPY 97 but struggles to climb - BBH
FXstreet.com (Barcelona) - Brown Brothers Harriman analysts note that the dollar held above JPY97.00, but is struggling to move above JPY97.80.
They see additional resistance near JPY98.10 and they note that the Nikkei lost about 0.45%, led by weakness in industrials and telecoms. They write, “One of the declared goals of the Abe government is for higher wages to help strengthen the economy. This has yet to take place. Today the government reported total wage earnings fell 0.6% in the year through March. Base wages were off 0.8% after a 0.7% decline in Feb. They are going in the wrong direction. Special payments, which includes bonuses and commuting costs were up 8.2% in the year through March, down from 10.7% in Feb. Arguably, even more ominous, is the largest drop in overtime pay since late 2009.”
They see additional resistance near JPY98.10 and they note that the Nikkei lost about 0.45%, led by weakness in industrials and telecoms. They write, “One of the declared goals of the Abe government is for higher wages to help strengthen the economy. This has yet to take place. Today the government reported total wage earnings fell 0.6% in the year through March. Base wages were off 0.8% after a 0.7% decline in Feb. They are going in the wrong direction. Special payments, which includes bonuses and commuting costs were up 8.2% in the year through March, down from 10.7% in Feb. Arguably, even more ominous, is the largest drop in overtime pay since late 2009.”