- The EUR/JPY descends as Japanese gains strength after the publication of Tokyo Consumer Price Index (CPI) on Friday.
- Tokyo’s underlying IPC increased by 2.4% year -on -year in March, staying above the 2% target of the Bank of Japan.
- The euro (EUR) weakens as commercial tensions between the United States and the Eurozone increase.
The EUR/JPY goes back its recent profits from the previous session, quoting around 162.70 during Asian hours. The currency crossing is depreciated as Japanese (JPY) is strengthened after the publication of Tokyo Consumer Price Index (IPC) on Friday.
Tokyo’s underlying IPC rose 2.4% year -on -year in March, compared to 2.2% in February, aligning with market expectations. This is the fifth consecutive month in which the underlying inflation remains above the 2% target of the Bank of Japan (BOJ), reinforcing the speculation that the Central Bank will continue to normalize its monetary policy.
Tokyo’s general CPI for March increased a 2.9% year -on -year, without changes compared to the previous month, according to the Japan Statistics Office. Meanwhile, Tokyo’s CPI, excluding fresh food and energy, rose to 1.1% in March from 0.8% in February (reviewed from 2.2%).
The BOJ, in the summary of its March meeting, reaffirmed its commitment to increase policy interest rates and adjust monetary accommodation if economic and pricing conditions justify it. The Central Bank emphasized a flexible and data -based approach, taking into account the evolutionary economic trends, inflationary pressures and associated risks.
The EUR/JPY crossing also faces pressure as the euro (EUR) weakens in front of its peers in the midst of growing commercial tensions between the United States (USA) and the Eurozone. Concerns about a possible commercial war have intensified as the European Union (EU) prepares to impose retaliation tariffs in response to 25% tariffs on cars imposed by President Donald Trump, who will enter into force on April 2.
Germany is expected to be significantly affected, since 13% of its total car exports are sent to the US. This development could weigh on the perspectives of the euro. On Wednesday, Trump signed a proclamation by imposing tariffs and warned of stricter measures against the EU and Canada if they respond.
Economic indicator
Tokyo ex IPC Fresh Foods (Yoy)
The consumer price index is published by the Statistics Bureau And it is a measure of the movement of prices obtained based on the comparison of retail prices of a basket of the representative purchase of goods and services excluding fresh foods. The index captures inflation in Tokyo. The CPI is the most significant way to measure changes in purchase trends. The purchasing power of the YEN is diminished when inflation increases. A reading superior to the anticipated is bullish for the Yen.
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Last publication:
Mar Mar 27, 2025 23:30
Frequency:
Monthly
Current:
2.4%
Dear:
2.2%
Previous:
2.2%
Fountain:
Statistics Bureau of Japan
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
