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":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/31872","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=31872"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/31872\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/17040"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=31872"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=31872"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=31872"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}