- The EUR/JPY fell after the publication of the Gross Domestic Product report of Japan on Monday.
- Japan’s GDP increased 0.7% intertramestral in the fourth quarter, marking the third consecutive quarter of growth.
- The euro could win if a fire is remembered in Ukraine and gas supplies resume.
The EUR/JPY yields the profits of the previous session, quoting around 159.10 during the Asian hours of Monday. This fall is linked to a stronger Japanese (JPY), driven by a robust report of the Gross Domestic Product (GDP) of Japan that exceeded expectations, reinforcing the speculation of the market that the Bank of Japan (BOJ) will continue to upload the interest rates.
Japan’s economy grew 0.7% in the fourth quarter, compared to the 0.4% revised increase in the previous quarter. This marks the third consecutive quarter of growth, driven by a strong rebound in business investment. The annual growth was accelerated from 1.7% reviewed in the third quarter to 2.8%, supporting the BOJ posture on new rates of rates in signals of a broader inflation.
The chief secretary of the Japan Cabinet, Yoshima Hayashi, commented on Monday that Japan faces significant risks if their companies become objectives due to the policies of the US president, Donald Trump, and the government will respond with caution to the possible Impacts.
The euro could be strengthened in front of its peers if a fire is reached in Ukraine and gas supplies resume. The reports suggest that Trump and Russian President Vladimir Putin have agreed to initiate negotiations to end the conflict. BBC sources indicate that Trump administration officials will meet with their Russian counterparts in Saudi Arabia on Tuesday to discuss a possible peace agreement.
However, any rise for the euro could be limited since several officials of the European Central Bank (ECB) feel comfortable with the expectations that the Central Bank will reduce its deposit rate three times more this year. The ECB has already reduced interest rates at 25 basic points (PB) to 2.75% last month.
Economic indicator
Gross Domestic Product (QOQ)
The GDP published by the Cabinet Office It is an estimate of the total value of the goods and services produced in Japan. GDP is considered a measure of global economic activity and indicates the growth rate of the economy of a country. A reading superior to expectations is bullish for Yen, while a lower reading is bassist.
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Last publication:
Dom Feb 16, 2025 23:50 (PREL)
Frequency:
Quarterly
Current:
0.7%
Dear:
0.3%
Previous:
0.3%
Fountain:
Japanese Cabinet Office
Why is it important for operators?
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.
