EUR/JPY slips near 179.50 after less disappointing Japan’s preliminary Q3 GDP data

EUR/JPY depreciates as the Japanese Yen holds gains after Japan’s preliminary Q3 GDP data came in less negative.
Japan’s preliminary GDP declined 0.4% QoQ in Q3, beating expectations for a 0.6% drop.
The Euro may also regain support amid cautious sentiment over the ECB’s near-term monetary policy outlook.

Akhtar Faruqui FXStreet

EUR/JPY extends its losses for the second consecutive day after pulling back from a record high of 179.97 reached in the previous session, trading around 179.40 during the Asian hours on Monday. The currency cross remains subdued as the Japanese Yen (JPY) holds ground after the release of better-than-expected Japan’s Gross Domestic Product (GDP) data for the third quarter.

Japan’s preliminary GDP fell 0.4% quarter-over-quarter (QoQ) in Q3 2025, reversing the 0.6% growth seen in Q2 but outperforming expectations for a 0.6% contraction. On an annualized basis, the economy shrank 1.8%, a smaller drop than the anticipated 2.5% decline, following a slightly revised 2.3% expansion in the previous quarter.

However, the JPY could face challenges as Prime Minister Sanae Takaichi urged the Bank of Japan (BoJ) to keep interest rates low, stressing that monetary policy must continue supporting solid economic growth and stable inflation.

Meanwhile, BoJ Governor Kazuo Ueda pointed to firm consumption driven by rising household incomes and a tightening labor market, adding that underlying inflation is steadily moving toward the central bank’s 2% target, signaling that a rate hike remains a near-term possibility.

The EUR/JPY cross may regain its ground as the Euro (EUR) could further receive support from the cautious sentiment surrounding the near-term European Central Bank’s (ECB) monetary policy outlook. The ECB is widely expected to keep rates unchanged, supported by stable economic performance and inflation near target.

Bloomberg reported on Saturday that European Central Bank (ECB) Governing Council Member Olli Rehn cautioned that the risk of slowing inflation should not be overlooked, though upside risks remain. Rehn noted that the euro-area economy is holding up despite disruptions from the Trump administration’s tariff policies, with growth slow but steady. He also emphasized the need for strong bank buffers and a vigilant policy stance.

Economic Indicator

Gross Domestic Product (QoQ)

The Gross Domestic Product (GDP), released by Japan’s Cabinet Office on a quarterly basis, is a measure of the total value of all goods and services produced in Japan during a given period. The GDP is considered as the main measure of Japan’s economic activity. The QoQ reading compares economic activity in the reference quarter to the previous quarter. Generally, a high reading is seen as bullish for the Japanese Yen (JPY), while a low reading is seen as bearish.

GBP/USD strengthens to near 1.3350 as cooling US labor market weighs US Dollar

The GBP/USD pair trades with mild gains near 1.3350 during the early Asian trading hours on Friday. The US Dollar edges lower against the British Pound on a weaker-than-expected US Nonfarm Payrolls report. The US markets will be closed on Friday in observance of Independence Day.

EUR/USD softens below 1.1450 as softer Eurozone inflation trims ECB hike bets

The EUR/USD pair declines to around 1.1420 during the early Asian session on Thursday, pressured by a soft Eurozone inflation outlook. The US Dollar strengthens against the Euro despite disappointing US June labor data. European Central Bank President Christine Lagarde is scheduled to speak later on Friday.

Gold regains 21-day SMA above $4,150 amid easing Fed hike bets

Gold trades near a more than one-week high just shy of the $4,200 level in the Asian session on Friday and seems poised to snap a four-week losing streak. June's softer US NFP report dented Fed rate hike bets, which, in turn, is seen as a key factor supporting the non-yielding bullion.

Bitcoin whale deposits rise as exchange inflows flash bearish warning — CryptoQuant

Bitcoin is facing renewed downside risks after exchange inflows surged to levels rarely seen this year, signaling the market could be entering another period of heightened volatility, according to a report by CryptoQuant on Thursday. The report noted that the $60,000 level remains a decisive support zone despite Bitcoin establishing a fresh bear market low below $58,000 earlier in the week.

Economics week ahead

Market attention turns to next week's FOMC minutes for any signs of what could shift a divided Committee from a hold toward rate hikes. The dot plot from the last meeting made clear that policymakers are split on whether rate hikes are warranted, but with forward guidance getting tamped down under Chair Warsh, the Fed's reaction function remains uncertain in terms of what exactly would build broader support for more restrictive policy.

Kevin Warsh offers no policy clues: Why markets still got their answer

Financial markets came to Sintra looking for clues about the Federal Reserve's (Fed) next move. They largely left with confirmation that Fed Chair Kevin Warsh intends to make those clues much harder to find.