The EUR/JPY pair remained steady near 163.30 during Asian trading hours on Tuesday, following gains recorded the previous day. Market participants are awaiting the Eurozone’s Harmonized Index of Consumer Prices (HICP) data scheduled for later in the session.
The pair’s stability comes as the Japanese Yen (JPY) showed limited losses despite hawkish signals from Bank of Japan (BoJ) Governor Kazuo Ueda, who indicated readiness to raise interest rates if economic and inflation data align with projections.
Governor Ueda emphasized that Japan’s economy is experiencing a moderate recovery, despite some areas of weakness. He noted improving corporate profits and solid business sentiment, adding, “We will review bond taper plans at the next policy meeting, considering the views of bond market participants.”
The Yen also faced pressure as the US Dollar regained ground amid a technical correction, even as concerns mount over stagflation risks in the United States. Traders remained cautious ahead of the US implementation, on Wednesday, of doubled import tariffs—rising from 25% to 50%—on steel and aluminum.
The European Union (EU) voiced strong regret over the US plan to double tariffs, warning it could jeopardize ongoing bilateral trade negotiations. On Saturday, the European Commission expressed concerns that the tariff increase undermines efforts to reach a trade deal and signaled potential “countermeasures,” according to the BBC.
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