All attention on the market is on the Brexit process. Fears over the no-deal Brexit pushed the British pound deep down yesterday after UK Prime Minister Boris Johnson claimed he was ready to abandon negotiations.
Japan's February household spending leaps for the third month in a row
In February, Japan's household spending headed north for a third month in a row, as a Reuters survey uncovered. However, recent downbeat data, in particular factory output and exports clouded a mild economic revival.
In February, household spending jumped by 2.1% from 2018, according to the survey of 16 experts. The given outcome followed January’s 2% leap as well as December’s 0.1% jump.
Wages are steadily reviving, while winter bonuses tacked on. Market experts added that there was a pause in price leaps, and they hoped household spending rallied in February.
As for consumer spending, it’s not so bad, although it lacks momentum.
Some analysts told that domestic demand isn’t firm enough to compensate weakness in foreign demand. Moreover, there’s a likelihood that the Japanese economy shrank in January-March.
Market experts told that firm wages as well as an improving jobs market backed consumer spending, although fears about the outlook for the Japanese economy put pressure on market sentiment.
In March, the Japanese cabinet had its view on the national economy downgraded for the first time for three years. Japan’s major financial institution also pared its assessment on exports as well as factory output, although both told the Japanese economy kept moderately reviving.
Japan is eager to lift the sales tax to 10% in October, although market speculation states that Prime Minister Shinzo Abe might delay the twice-delayed tax lift as the Japanese economy struggles on decorating global surge and the China-US trade conflict.
The Japanese cabinet will uncover household spending data on April 4, Friday at 8:30 a.m.
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.
The US dollar’s weakness offered a boost to emerging-market currencies and oil.