EUR/JPY fell 1.11% on Monday, trading near 179.45, as the Japanese Yen strengthened on expectations that the Bank of Japan will tighten policy. Markets have priced in a 25-basis-point hike for the September 17–18 meeting, and some analysts flag scope for a larger move as inflation expectations and long-term bond yields rise. Separate talk of possible foreign exchange intervention by Japanese authorities also underpinned the Yen, reinforcing downside pressure in the cross.
German Industrial Data Weighs On Euro
In Europe, the Euro faced mixed data. Germany’s Destatis said industrial production fell 1.1% month on month in July after June was revised to flat from a 0.2% rise, missing a 0.3% consensus; output was also down 1.6% year on year after a 0.5% fall in June.
Eurozone Sentiment And GDP Data Offer Positives
Elsewhere, Eurozone Sentix improved to 5.1 in September from 0.9, while second-quarter GDP was revised up to 0.6% quarter on quarter from 0.4%, and to 1.2% year on year from 1.0% after 0.6% in Q1.
