EUR/JPY defies weak ZEW data from Eurozone and Germany
- EUR/JPY rises by 0.48% despite disappointing ZEW data
- USD/JPY strength contributes to the bullish momentum
The EUR/JPY pair is trading higher, showing resilience against worse-than-expected ZEW data from the Eurozone and Germany. The strength in the USD/JPY pair has provided support to the EUR/JPY pair, which is currently at 157.28, up from its low of 156.05.
Positive US Retail Sales data boosts USD/JPY
- US Retail Sales exceed estimates, driving USD/JPY higher
- No clear signal on Fed rate cut size ahead of FOMC meeting
The USD/JPY pair has seen an uptick following better-than-expected Retail Sales data in the US. The 0.1% month-on-month expansion in August, compared to an estimated -0.2% contraction, has boosted the pair. However, the data did not provide clear insights into the size of the upcoming Federal Reserve rate cut.
Market sentiment has been positive in response to the data, with Wall Street extending its gains and the US Dollar strengthening ahead of the Federal Open Market Committee (FOMC) meeting.
The EU ZEW Survey of Expectations has shown a decline to an eleven-month low of 9.3 in September, reflecting ongoing uncertainty about the economic outlook and monetary policy direction.
Analysts speculate on ECB and BoJ actions
- ECB Member Simkus dismisses rate cut in October
- BoJ expected to hold rates, but analysts suggest a potential increase
European Central Bank (ECB) Member Gediminas Simkus has indicated that the economy is progressing as expected and has downplayed the likelihood of a rate cut in October.
Meanwhile, the Bank of Japan (BoJ) is set to conduct its monetary policy meeting. While the consensus points towards no change in rates, analysts at Standard Chartered believe that rates could reach 0.50% by the end of the year.
EUR/JPY Price Forecast and Technical Analysis
The upcoming FOMC meeting could impact both the Euro and the Yen. If the Fed’s decision triggers a risk-off sentiment, we may see a downside in the EUR/JPY pair.
Currently, the pair has broken above the Tenkan-Sen at 157.46 and aims to challenge the Senkou Span A at 158.49. To continue its upward momentum, the pair needs to surpass the 158.00 level, with potential targets at the Kijun-Sen at 159.51.
In case of a reversal, the EUR/JPY could retest the recent low at 155.14, set on September 16th.
Euro PRICE Today
The table below illustrates the percentage change of the Euro (EUR) against major currencies today. The Euro has shown strength against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.08% | 0.15% | 0.74% | 0.01% | -0.18% | 0.13% | 0.23% | |
| EUR | -0.08% | 0.07% | 0.63% | -0.10% | -0.28% | 0.05% | ||
| GBP | -0.15% | -0.07% | 0.58% | -0.13% | -0.35% | -0.01% | ||
| JPY | -0.74% | -0.63% | -0.58% | -0.72% | -0.91% | -0.60% | ||
| CAD | -0.01% | 0.10% | 0.13% | 0.72% | -0.19% | 0.13% | ||
| AUD | 0.18% | 0.28% | 0.35% | 0.91% | 0.19% | 0.31% | ||
| NZD | -0.13% | -0.05% | 0.01% | 0.60% | -0.13% | -0.31% | ||
| CHF | -0.23% | -0.16% | -0.06% | 0.52% | -0.20% | -0.39% | -0.07% |
The heat map illustrates the percentage changes of major currencies against each other. The base currency is selected from the left column, and the quote currency is chosen from the top row. For instance, if you choose the Euro on the left column and move horizontally to the US Dollar, the displayed percentage change represents EUR (base)/USD (quote).