Euro flattens against the Japanese Yen in countdown to Eurozone HICP data

Euro trades broadly under pressure near 177.60 against the Japanese Yen.
Hotter-than-projected Tokyo CPI data for September might prompt hawkish BoJ bets.
Soaring France bond yields will likely keep the Euro under pressure.

The Euro (EUR) trades flat against the Japanese Yen (JPY) at around 177.60 during the Asian trading session on Friday, but the pair is close to its fresh over 10-month low of 176.66 posted the previous day.

The Japanese currency broadly outperforms on Friday as Tokyo Consumer Price Index (CPI) data for September remains stronger-than-expected, reinforcing expectations of more interest rate hikes by the Bank of Japan (BoJ) in the near term.

Análisis de TMGM: noticias de mercados financieros, calendario económico e información del mercado

Japanese Yen Price Today

The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies today. Japanese Yen was the strongest against the US Dollar.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		-0.04%	-0.06%	-0.08%	-0.03%	-0.01%	-0.06%	-0.09%
EUR	0.04%		-0.03%	-0.04%	0.02%	0.06%	-0.01%	-0.05%
GBP	0.06%	0.03%		-0.02%	0.02%	0.07%	0.00%	-0.03%
JPY	0.08%	0.04%	0.02%		0.06%	0.07%	0.02%	-0.01%
CAD	0.03%	-0.02%	-0.02%	-0.06%		0.01%	-0.05%	-0.07%
AUD	0.00%	-0.06%	-0.07%	-0.07%	-0.01%		-0.06%	-0.08%
NZD	0.06%	0.00%	-0.01%	-0.02%	0.05%	0.06%		-0.02%
CHF	0.09%	0.05%	0.03%	0.01%	0.07%	0.08%	0.02%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Japanese Yen from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent JPY (base)/USD (quote).

Tokyo CPI ex. Fresh Food arrives at 2.7% Year-on-Year (YoY), higher than 2.4% estimates and the previous reading of 1.8%. The headline inflation accelerates to 2.7% from 1.9% in August.

The BoJ Summary of Opinions of the September policy meeting on Thursday showed that several policymakers argued in favor of tightening monetary conditions further, adding that “focus must be on anchoring underlying inflation near 2%”.

Meanwhile, the Euro is expected to trade cautiously as surging government bond yields in France due to accelerating public debt could prompt fiscal concerns. According to a report from Associated Press (AP), the public debt in France now stands at 119% of Gross Domestic Product (GDP), which has pushed 10-year France bond yields to 4.96%. This is the highest level seen since August 2002.

In response, France’s Finance Minister Roland Lescure has vowed to put public finances back on track for budget consolidation, aiming to reduce its budget deficit from a target of 5% of economic output next year to the European Union limit of 3% by 2029, Reuters report.

On the economic data front, investors await the Eurozone preliminary Harmonized Index of Consumer Prices (HICP) data for September, which will be published at 09:00 GMT.

Economic Indicator

Tokyo CPI ex Fresh Food (YoY)

The Tokyo Consumer Price Index (CPI), released by the Statistics Bureau of Japan on a monthly basis, measures the price fluctuation of goods and services purchased by households in the Tokyo region excluding fresh food, whose prices often fluctuate depending on the weather. The index is widely considered as a leading indicator of Japan’s overall CPI as it is published weeks before the nationwide reading. The YoY reading compares prices in the reference month to the same month a year earlier. Generally, a high reading is seen as bullish for the Japanese Yen (JPY), while a low reading is seen as bearish.