EUR/JPY Holds Near 173.00 as Markets Await Eurozone GDP
The EUR/JPY pair is trading quietly around 173.00, holding just below a one-month high. Investor sentiment remains positive as markets expect the European Central Bank (ECB) to keep interest rates on hold, given that Eurozone inflation is running near its 2% target.
Both ECB officials Isabel Schnabel and Gediminas Šimkus have indicated that current policy is appropriate and that no further rate cuts are expected. This hints at a stable outlook for the euro (EUR).
On the other side, the Japanese yen (JPY) finds some support from improving domestic data, including a return to positive real wages and rising household spending. This helps cap EUR/JPY upside despite ongoing safe-haven demand for JPY.
All eyes are now on the upcoming revised Eurozone Q2 GDP figures. A stronger-than-expected print could push EUR/JPY higher toward 173.50, while a weaker reading might trigger downward pressure, especially if it suggests persistent economic weakness.
Impact:
If Eurozone GDP surprises on the upside, EUR/JPY could break above 173.50, boosting the euro. A weak GDP outcome might tilt flows toward safe-haven JPY, weighing on the pair.
