Yen pulls back as speculation of Dec poll cools

London

THE yen pulled back from a seven-year low against the US dollar on Wednesday, after comments from a Japanese government official cooled speculation that Prime Minister Shinzo Abe will call a December election.

British wage data and the Bank of England's (BOE) quarterly Inflation Report mean that the focus in Europe will be on the pound and the likely timing of a first British interest rate rise. Wage growth, due at 0930 GMT, is likely to be subdued while the BOE report could lower near-term inflation forecasts. That would suggest that rates will stay lower for longer and keep the sterling under pressure, traders said.