EUR/JPY remains subdued around 176.00 ahead of Germany’s ZEW Survey data

EUR/JPY struggles as the Japanese Yen advances, possibly due to BoJ’s intervention.
Japan’s Komeito party has announced it is leaving the ruling coalition led by the Liberal Democratic Party.
The Euro weakens amid ongoing political unrest in France, as President Emmanuel Macron reappointed Sebastien Lecornu as Prime Minister.

Akhtar Faruqui FXStreet

EUR/JPY loses ground for the fourth consecutive session, trading around 176.00 during the Asian hours on Tuesday. The currency cross loses ground as the Japanese Yen (JPY) recovers its losses from the previous session due to the possible intervention by the Japanese authorities. Traders will likely observe the final September Harmonized Index of Consumer Prices (HICP) and ZEW Survey data from Germany.

However, the Japanese Yen is poised to lose ground amid political uncertainty in Japan after the Komeito party announced its withdrawal from the ruling coalition led by the Liberal Democratic Party. This withdrawal has heightened doubts about Sanae Takaichi’s policy agenda and complicated her path to the premiership.

Meanwhile, Finance Minister Katsunobu Kato said Japan’s current economic situation differs from the expansionary policies of the Abenomics era, noting that inflation, rather than deflation, is now the primary concern. He also cautioned against abrupt, one-sided currency movements, stressing that exchange rates should align with economic fundamentals.

The EUR/JPY cross also faces challenges as the Euro (EUR) struggles amid ongoing political unrest in France. President Emmanuel Macron reappointed Sebastien Lecornu as Prime Minister, who has since formed a new cabinet. However, opposition leaders Marine Le Pen and Eric Ciotti have already filed a no-confidence motion in an attempt to oust Lecornu’s government.

Economic Indicator

ZEW Survey – Economic Sentiment

The Economic Sentiment published by the Zentrum für Europäische Wirtschaftsforschung measures the institutional investor sentiment, reflecting the difference between the share of investors that are optimistic and the share of analysts that are pessimistic. Generally speaking, an optimistic view is considered as positive (or bullish) for the EUR, whereas a pessimistic view is considered as negative (or bearish).

EUR/USD climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold flirts with four-week highs past $5,200

Gold extends its rebound, climbing for a third consecutive session and pushing back above the $5,200 mark per troy ounce on Friday. The move higher continues to draw support from lingering geopolitical tensions and the ongoing uncertainty surrounding US trade policy, both of which are keeping safe-haven demand firmly in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary.

Changing the game: International implications of recent tariff developments

The Supreme Court ruling on International Emergency Economic Powers Act (IEEPA) tariffs provides limited relief for the rest of the world, with weighted average tariff rates modestly lower.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.