The EURJPY exchange rate has European GDP figures ahead on Thursday after hitting price resistance.
The EUR v JPY found resistance at the 164.93 level that marked the high heading into 2025. A bearish daily close is in play and GDP could confirm a breakout higher or a correction.
The Eurozone latest economic data on Thursday at 5pm HKT with employment figures and a preliminary GDP figure for Q1. Economists are expecting a reading of 0.4% for growth, with the full year expectation staying at 1.2%.
A speech by ECB policymaker Luis De Guindos at 6:15pm could also add some fuel to a move before Friday. The European Central Bank is expected to lower borrowing costs more than previously expected this year after inflation came in lower.
Lithuania’s central-bank governor Gediminas Simkus told Bloomberg last week that another move in June is “needed” as the euro-area economy is yet to feel the effects of the recent tariffs and their “clear disinflationary forces”.
He also said there were “chances that there might be another cut after June,” although the timing is open. Another cut could come in July, September or December, he added. Finland’s Olli Rehn also commented that he would back another move next month if the ECB’s new projections confirm the deflationary outlook.
“Downside risks in the data likely have to still materialize to convince the ECB to cut beyond a likely move in June,” said Greg Fuzesi at JPMorgan this week. “We continue to think that that will happen, even if Schnabel will take a lot of convincing,” he said, referring to Executive Board member Isabel Schnabel.
In Japan, Prime Minister Shigeru Ishiba’s economic advisory panel recommended an investment of $400 billion to boost productivity at smaller firms, leading to some gains for the yen.
Attention now turns to the Q1 GDP figure for the Euro which could add to a correction if it shows weakness ahead of the recent tariffs.
