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EUR/JPY stays muted near 175.00 following Germany’s GfK Consumer Confidence

  • EUR/JPY remains steady as consumer confidence remains weak in Germany.
  • Germany’s GfK Consumer Confidence improved to -22.3 in October, surpassing expectations of -23.3.
  • BoJ’s Meeting Minutes indicated that policymakers remain open to further rate hikes if economic and inflation trends evolve as expected.

EUR/JPY edges lower after three days of gains, trading around 174.70 during the European hours on Thursday. The currency cross holds losses as the Euro (EUR) moves little following the GfK Consumer Confidence from Germany. The reading showed weak consumer confidence but improved to -22.3 in October, better-than-expected -23.3 from the previous reading of -23.5 (revised from 23.6).

The IFO Institute reported on Wednesday that the headline German Business Climate Index unexpectedly fell to 87.7 in September from 89.0 in August. The data undermined the market expectations of 89.3. This came after a mixed HCOB Purchasing Managers’ Index (PMI) survey, showing Eurozone private sector growth in September, driven by stronger services as manufacturing fell back into contraction.

The EUR/JPY cross loses ground as the Japanese Yen (JPY) advances on the hawkish Bank of Japan (BoJ) Meeting Minutes. The minutes showed policymakers remain inclined to hike rates further if economic and inflation trends unfold as anticipated. Many members said the US–Japan trade deal reduced uncertainty in the outlook, but tariffs still need scrutiny for their impact on the economy and prices.

Japan’s Corporate Service Price Index, which measures the prices companies charge each other for services, increased 2.7% year-over-year in August, up from a revised 2.6% rise in July. This leading indicator of service-sector inflation suggests that rising labor costs are likely to support the BoJ’s goal of sustaining inflation near its 2% target. Investors are now turning their attention to Friday’s Tokyo inflation report, a key indicator of nationwide trends, for further guidance on policy direction.

Euro Price Today

The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the weakest against the New Zealand Dollar.

USDEURGBPJPYCADAUDNZDCHF
USD-0.09%-0.07%-0.13%-0.03%-0.29%-0.29%0.03%
EUR0.09%0.01%-0.05%0.05%-0.17%-0.20%0.11%
GBP0.07%-0.01%-0.04%0.04%-0.22%-0.19%0.14%
JPY0.13%0.05%0.04%0.07%-0.19%-0.00%0.17%
CAD0.03%-0.05%-0.04%-0.07%-0.24%-0.25%0.10%
AUD0.29%0.17%0.22%0.19%0.24%0.29%0.31%
NZD0.29%0.20%0.19%0.00%0.25%-0.29%0.07%
CHF-0.03%-0.11%-0.14%-0.17%-0.10%-0.31%-0.07%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent EUR (base)/USD (quote).

Author

Akhtar Faruqui

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

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