EUR/JPY appreciates above 183.60 on generalised Yen weakness
The Euro appreciates sharply on Friday, reaching session highs above 183.60 after bouncing from three-week lows at 182.63, to retrace most of the weekly losses. The Yen drops across the board amid concerns about tensions with China and market uncertainty about the timing of the Bank of Japan’s (BoJ) next rate hike.
On the macroeconomic front, data from Japan released earlier on Friday showed that household spending bounced back, with a 2.9% yearly increase in November, following a 3% contraction in October and beating market expectations of a 0.9% decline.
Beyond that, November’s preliminary Leading Economic Index improved to 110.5, its highest level since July last year, pointing to steady economic growth. The impact of these figures on the Yen, however, has been marginal.
In the Eurozone, mixed German data have failed to provide any significant fundamental support to the Euro. German Industrial Production rose 0.8%, against market expectations of a 0.4% decline. The Trade Balance surplus, on the other hand, narrowed to €13.1 billion, against expectations of a €16.5 surplus, weighed by a 2.5% decline in exports, which has raised concerns about the outlook of a trade-oriented economy.
Later on Friday, Eurozone Retail Sales are expected to show that consumption ticked up 0.1% in November after a flat reading in October, although the highlight of the day is the US NFP report and the Supreme Court’s ruling on Trump’s tariffs.
trade-oriented
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