Anna 
Japan’s largest trade union confederation, Rengo, has reportedly confirmed that its demand for pay raises of 5.85%, equivalent to JPY18,215, this year, has been met. The Chief Cabinet Secretary of Japan, Yoshimasa Hayashi, expressed the desire to witness widespread wage increases across the economy, emphasizing the importance of extending such hikes to mid-sized and small companies. USD/JPY, after experiencing nearly a 0.5% increase on Tuesday, remains relatively stable above 147.50 as the European session commences.
In response to these developments, Bank of Japan (BoJ) Governor Kazuo Ueda commented that a thorough examination is necessary to assess the emergence of a positive wage-inflation cycle, crucial in determining the conditions for phasing out stimulus measures.
Although there are expectations for a potential shift in the BoJ’s stance, Japanese Yen bulls appear reserved in their commitment.
Meanwhile, GBP/USD maintains stability around 1.2800 during the European morning, following two consecutive days of negative closes. The Office for National Statistics in the UK reported a 0.2% monthly expansion in real Gross Domestic Product (GDP) for January, aligning with market expectations and indicating recovery after the 0.1% contraction recorded in December.
Gold, which concluded a nine-day winning streak with a more than 1% loss on Tuesday, is in a consolidation phase around $2,160 on Wednesday. The decline was attributed to recovering US Treasury bond yields, while XAU/USD benefits from sliding yields, keeping USD bulls on the defensive.
EUR/USD underwent a recovery after finding support near 1.0900, closing the day flat on Tuesday. The pair hovers within a narrow range near 1.0930 during the European morning.
