tradingkey.logo

EUR/JPY rebounds above 161.50 ahead of German GDP data

FXStreetAug 27, 2024 5:43 AM
  • EUR/JPY gains ground around 161.60 in Tuesday’s early European session, up 0.20% on the day. 
  • Investors will focus on the German Q2 GDP report, which is due on Tuesday.
  • Hawkish signals from the BoJ are largely ignored as traders await fresh catalysts. 


The EUR/JPY cross trades on a stronger note near 161.60 during the early European session on Tuesday. The uncertainty about the future rate path in Japan weighs on the Japanese Yen (JPY) and creates a tailwind for EUR/JPY. 
The hawkish comments from the Bank of Japan’s (BoJ) Governor Kazuo Ueda fail to boost the JPY as traders await clearer guidance on the future rate path. Japan’s Tokyo Consumer Price Index (CPI) on Friday will be in the spotlight. BoJ’s Ueda said last week that the Japanese central bank could raise interest rates further if its economic projections are accurate.
Market players will also keep an eye on the geopolitical tensions in the Middle East. Any signs of escalation could boost safe-haven flows and lift the JPY. Hamas rejects fresh Israeli conditions in ceasefire talks in Egypt and insists that Israel be bound by the terms of a proposal laid out by US President Joe Biden and the UN Security Council, per local news agency Aljazeera. 
The European Central Bank’s (ECB) chief economist Philip Lane said there had been “good progress” so far in taming price pressures in the Eurozone. However, the goal of getting inflation back to 2% is “not yet secure,” and the interest rates will need to stay restrictive for the time being. Investors will take more cues from the German Gross Domestic Product (GDP) for the second quarter, which is due on Tuesday. 
Later this week, the Eurozone inflation data will be closely watched. Markets expect the ECB to cut interest rates twice this year, with the next move set for September. The ECB rate cut expectation might weigh on the Euro (EUR) against the JPY in the near term. 

Reviewed byTony
Disclaimer: The content of this article solely represents the author's personal opinions and does not reflect the official stance of Tradingkey. It should not be considered as investment advice. The article is intended for reference purposes only, and readers should not base any investment decisions solely on its content. Tradingkey bears no responsibility for any trading outcomes resulting from reliance on this article. Furthermore, Tradingkey cannot guarantee the accuracy of the article's content. Before making any investment decisions, it is advisable to consult an independent financial advisor to fully understand the associated risks.

Related Instruments

Recommended Articles

tradingkey.logo
tradingkey.logo
Intraday Data provided by Refinitiv and subject to terms of use. Historical and current end-of-day data provided by Refinitiv. All quotes are in local exchange time. Real-time last sale data for U.S. stock quotes reflect trades reported through Nasdaq only. Intraday data delayed at least 15 minutes or per exchange requirements.
* References, analysis, and trading strategies are provided by the third-party provider, Trading Central, and the point of view is based on the independent assessment and judgement of the analyst, without considering the investment objectives and financial situation of the investors.
Risk Warning: Our Website and Mobile App provides only general information on certain investment products. Finsights does not provide, and the provision of such information must not be construed as Finsights providing, financial advice or recommendation for any investment product.
Investment products are subject to significant investment risks, including the possible loss of the principal amount invested and may not be suitable for everyone. Past performance of investment products is not indicative of their future performance.
Finsights may allow third party advertisers or affiliates to place or deliver advertisements on our Website or Mobile App or any part thereof and may be compensated by them based on your interaction with the advertisements.
© Copyright: FINSIGHTS MEDIA PTE. LTD. All Rights Reserved.