EUR/JPY extends its downside below 170.00, German Retail Sales arrive weaker than expected in April – Crypto News – Crypto News
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EUR/JPY extends its downside below 170.00, German Retail Sales arrive weaker than expected in April – Crypto News

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  • EUR/JPY extends the decline near 169.78 in Friday’s early European session. 
  • The German Retail Sales came in weaker than expected, dropping 1.2% MoM in April from a 1.8% rise in March.
  • Tokyo CPI inflation rose 2.2% YoY in May, heightening the uncertainty over the timing of the BoJ’s next rate hike.

The EUR/JPY cross trades in negative territory for the third consecutive day around 169.78 on Friday during the early European session. The cross remains under selling pressure after the weaker German Retail Sales data. Investors will shift their attention to the first reading of the Eurozone Harmonized Index of Consumer Prices  (HICP) for May, which is due later on Friday. 

The German month-on-month Retail Sales for April 2024 came in weaker than expected, Destatis reported on Friday. Germany’s Retail Sales dropped by 1.2% MoM in April from a 1.8% rise in March. On an annual basis, Retail Sales fell 0.6% in April from a 1.9% decline recorded in March. The downbeat German data had little to no impact on the Euro (EUR). 

Traders pare bets that the European Central Bank (ECB) will start easing policy ahead of other key central banks, and the markets anticipate the ECB will need more time to consider the inflation data carefully. The annual Harmonized Index of Consumer Prices (HICP) is estimated to rise at a stronger pace of 2.5%, compared to the prior reading of 2.4%, while the core HICP is forecast to show an increase of 2.8%, compared to 2.7% in April. 

On the JPY’s front, Japanese Finance Minister Shunichi Suzuki said on Friday that he will closely watch the foreign exchange (FX) moves and will take all measures on FX if it’s necessary. The verbal intervention from the Japanese authorities is likely to support the Japanese Yen (JPY) in the near term and cap the upside for the cross. 

Nonetheless, Tokyo Consumer Price Index (CPI) inflation rose 2.2% YoY in May from 1.8% in April. Meanwhile, the core CPI in Tokyo rose 1.9% in May, compared to a 1.6% increase in April, matching market expectations. The data heightens the uncertainty about the timing of the Bank of Japan’s (BoJ) next interest rate hike.

 

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