EUR/JPY moves in the positive direction after recovering losses on Friday.
Eurozone Retail Sales (YoY) contracted by 0.7% in February, a lower-than-expected decline of 1.3%.
The Japanese Yen enjoyed a safe-haven status amid escalated tensions in the Middle East.
EUR/JPY has recovered its intraday losses to move into positive territory, inching higher to near 164.10 during the European trading hours on Friday. However, the EUR/JPY cross faced challenges as the safe-haven Japanese Yen (JPY) gained attraction amid escalated geopolitical tension after Iran vowed to retaliate against Israel’s attack on Iran’s embassy in Syria, which resulted in the loss of Iranian military personnel.
The downbeat economic data from Germany might have pressured the Euro, limiting the advance of the EUR/JPY cross. The seasonally adjusted Factory Orders from the Federal Statistics Office of Germany, revealed a contraction of 0.2% month-over-month in February, falling short of the expected increase of 0.8% but swinging from the previous decline of 11.4%. The index YoY fell by 10.6%, exceeding the previous decline of 6.2%.
Eurozone Retail Sales (YoY) contracted by 0.7% in February, a lower-than-expected decline of 1.3% and 0.9% prior. The monthly index declined by 0.5%, exceeding the market expectations of a 0.4% decline.
Bank of Japan (BoJ) Governor Kazuo Ueda indicated on Friday that the central bank might adjust monetary policy if foreign exchange fluctuations significantly impact the wage-inflation cycle in a manner that cannot be ignored.
Japan’s Finance Minister Shunichi Suzuki echoed this sentiment, emphasizing his close monitoring of currency movements with a strong sense of urgency. He expressed readiness to explore all available options to address excessive volatility in the foreign exchange market.
Furthermore, Japan’s Prime Minister Fumio Kishida stated that appropriate action would be taken if there were excessive FX movements. He emphasized the utilization of all means to respond to such fluctuations. Prime Minister Kishida also highlighted the importance of stable forex movements reflecting fundamentals, stating that volatile movements are unfavorable.
Share:
Feed news
