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\u201318 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.<\/p>\n\n
In Europe, the Euro faced mixed data. Germany\u2019s 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.<\/p>\n\n
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.<\/p>\n\n\n\n