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EUR/JPY Slides Down as Investors Keep an Eye on German GDP Data

EUR/JPY is going down today, hovering in the mid-180s. Sellers are showing up as the Japanese Yen gets a little boost from talk about possible government intervention. Still, the pair isn’t dropping much—everyone’s just waiting to see what Germany’s latest GDP numbers have to say.

Intervention Talk Puts Yen in the Spotlight 

There’s been a fresh round of intervention rumours, and that’s helped the Yen. Japan’s finance minister made it clear they’re ready to step in if the currency gets too wild. Other officials have hinted at the same thing. They don’t want the Yen to get too weak and mess with the economy. Meanwhile, the Bank of Japan hasn’t ruled out a rate hike in December. Governor Ueda pointed out the obvious: a weaker Yen pushes inflation higher, and inflation’s already been running above target for years. So, between intervention talk and the chance of a rate hike, the Yen’s got some support, which keeps EUR/JPY from climbing.

 

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