After careening lower on Tuesday the pound was able to stabilise ahead of the publication of the UK’s latest retail sales figures.

GBP/EUR recovered from €1.1293 to €1.1321, GBP/USD fluctuated between $1.3012 and $1.3033, GBP/AUD dropped to a new low of AU$1.6299, GBP/NZD advanced from NZ$1.7662 to N$1.7763 and GBP/CAD recovered from C$1.6399 to C$1.6444.

What’s been happening?
Wednesday was a slow news day for the UK, with a lack of any influential data releases giving the pound the chance to stabilise after falling so dramatically on the back of the UK’s latest inflation stats.
While Sterling extended losses against the Australian and Canadian dollars, it held firm against the US dollar and clawed back some ground against the euro.
The GBP/EUR exchange rate advanced 0.3% on the day’s opening levels as the Eurozone’s construction report detailed a decline in output.
The euro was also feeling the strain ahead of today’s European Central Bank (ECB) interest rate decision.
Meanwhile, the US dollar found a little support in the form of outperforming domestic housing data.
With both housing starts and building permits figures smashing forecasts, the US dollar was able to creep higher against the euro. Higher-risk currencies still held the higher ground against USD however as renewed concerns about Donald Trump’s presidency and faltering Fed interest rate hike expectations kept the North American currency pressured.

What’s coming up?
We could be in for a bit of a roller-coaster ride today in terms of currency movement, with the UK set to publish its latest retail sales figures and the European Central Bank (ECB) scheduled to deliver its interest rate decision.
Positive consumer spending figures for the UK could help Sterling recoup some of this week’s losses, while a surprising decline in sales has the potential to send GBP exchange rates to new lows.
Meanwhile, a dovish tone from European Central Bank (ECB) President Mario Draghi is likely to leave the euro struggling heading into the weekend.
Draghi is due to speak this afternoon and it is hoped that he will offer some insight into the ECB’s future policy plans.
Hints that the central bank is close to winding down its quantitative easing programme would be euro-supportive, while indications that policymakers are willing to continue their current wait-and-see approach for the next few months would be euro-negative.
The only US news to be aware of is the nation’s initial jobless and continuing claims figures.

A recurring question for foreign workers in Japan is the question of the Japanese Pension contributions.

Contribution to the Japan Pension Service, along with Social Security contributions and Labour Insurance contributions, are compulsory for anyone working in Japan and those contributions are directly collected and paid by the employer.

For those who are in Japan for a determined period, or who plan not to retire in Japan, then the question of the fate of their contributions to the Japanese national pension system often remains unclear once they decide to leave Japan.

Japan has signed over the years several social security agreements with different countries to avoid for a foreign national to have to contribute in both Japan and his own country, and to totalize period of employment in both Japan and the other country. As of February 2017, those countries are Germany, United Kingdom, Republic of Korea, United States, Belgium, France, Canada, Australia, Netherlands, Czech Republic, Spain, Ireland, Brazil, Switzerland, Hungary, India. In addition, agreement have been signed and are in the process of being implemented with Italy, Luxembourg, Philippines, Slovak Republic.

For a foreign passport holder after having been employed and contributing to the Japanese public pension for more than 6 months the choice would be to either:

–          Leave pension contributions in Japan. This can leave a door open if the foreigner plans on returning to work in Japan. For a passport holder of one of the above-mentioned countries, those contributions would then count under the conditions determined by the social security agreement.

–          Claim for a Lump-Sum Withdrawal Payment under certain conditions. This would close the door to application of any other Japanese benefits.

On leaving Japan permanently, it is required to both file a tax return before leaving and settle tax amounts due, or appoint a Tax Representative.

To make the claim for the Japanese Pension Contributions it is advisable to appoint a Tax Representative, who can also make the Pension refund application.

The Pension refund will have 20% withholding income tax deduction taken before the balance is transferred overseas, and the Tax Representative can then file an annual tax return the following year to claim back the 20% tax deducted and remit this to the leavers overseas bank account.

The amount of the Lump-Sum Withdrawal Payment varies depending on the length of the contribution period with a limit of 36 months. For a foreigner having worked in Japan for more than 36 months the payment will be calculated up to 36 months and the rest of the period of contributions will be lost. It cannot be taken account in the case of a return to employment and contribution to the Japan Pension Service in the future and the benefits would then restart from zero.