Japan reports Labour Cash Earnings growth of 1.5% in August, down from 4.1% in July, and below the 2.6% forecast. In real terms, wages declined by 1.4%, marking an eighth consecutive monthly fall, reducing expectations for a BoJ rate hike.<\/p>\n
Sanae Takaichi’s win as leader of Japan’s ruling party positions her to become the next Prime Minister, with her pro-stimulus stance suggesting a continued accommodative BoJ policy. <\/p>\n
The EUR\/JPY stabilisation is due to Japan’s anticipated dovish policy and France’s political stability, though profit-taking limits upward momentum. Euro’s performance is varied against major currencies, strongest against the New Zealand Dollar.<\/p>\n
We are looking back at a period when EUR\/JPY was consolidating near a record high of 177, driven by a dovish Bank of Japan and easing political concerns in France. This setup created a powerful tailwind for the pair, rewarding anyone who was long. The fundamental story was simple: a central bank in Japan that couldn’t hike versus a relatively stable outlook in Europe.<\/p>\n
The outlook for a weak yen that we saw then has largely materialized over the past year. Japan\u2019s Q3 2025 wage growth figures, coming in at a tepid 1.8%, confirm that the Bank of Japan has had little room to aggressively tighten policy. The BoJ\u2019s policy rate has only moved to 0.1%, maintaining the yen’s position as a funding currency for carry trades.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" EUR\/JPY holds steady amid Japan’s weak wage data and French political stability, limiting prospects for hikes.<\/p>\n","protected":false},"author":62,"featured_media":17040,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-31872","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\n\t\t