EUR/JPY stays near 176.00 before Germany’s ZEW report
The EUR/JPY pair is trading close to 176.00 and remains weak for the fourth day in a row. The Japanese Yen has gained some strength, possibly because Japan’s government stepped in to support the currency after recent losses.
In Japan, political changes are also affecting the market. The Komeito party has left the ruling group led by the Liberal Democratic Party, creating uncertainty about the country’s next leader Sanae Takaichi. Japan’s Finance Minister Katsunobu Kato said the economy now faces different challenges than before. He explained that inflation is a bigger concern today, and warned against sudden moves in the Yen’s value.
In Europe, the Euro is under pressure due to political issues in France. President Emmanuel Macron reappointed Sebastien Lecornu as Prime Minister, but opposition leaders Marine Le Pen and Eric Ciotti quickly filed a no-confidence motion against the new government.
Traders are now waiting for Germany’s ZEW Economic Sentiment report, which shows how investors feel about the economy. The expected reading is 40.5, slightly higher than 37.3 last month. A strong result could help the euro, while a weak one may hurt it.
Impact:
The EUR/JPY pair might rise if the ZEW data is strong. But if the report is weak, the euro could fall further against the yen.
