- 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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD: Stuck within the range
AUD/USD left behind Tuesday’s strong pullback and regained upside impulse on Wednesday, advancing well north of 0.6500 the figure despite the late rebound in the Greenback. Investors will now closely follow the release of the always relevant Australian jobs report.
EUR/USD: The 1.1400 region holds the downside
EUR/USD came under late selling pressure and receded to the area of multi-day lows around 1.1460 following the firm bounce in the Greenback in the wake of the Fed’s interest rate decision and the hawkish tilt at Powell’s press conference. US markets will be closed on Thursday due to the Juneteenth holiday.
GBP/USD weakens further, confronts 1.3400
GBP/USD is currently under increasing selling pressure, testing the 1.3400 support level on Wednesday, amidst a robust recovery in the Greenback following the Fed's decision to maintain rates and Chief Powell's hawkish remarks during his press conference.
Ripple Price Prediction: XRP targets $2.65 signaling potential technical breakout
Ripple (XRP) offers signs of a bullish reversal after extending losses 9% from its recent highs at $2.34. Meanwhile, the cross-border money transfer token is trading around $2.15, while sentiment remains relatively calm in the broader crypto market.
In the Eurozone, inflation is also a monetary phenomenon
Monetary aggregates continue to be closely monitored by the European Central Bank (ECB), a sign that, despite the passage of time and the increasing complexity of financing circuits, quantitative theory remains relevant.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.