EUR/JPY stabilizes near record high amid BoJ dovish outlook and French political uncertainty

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EUR/JPY trades at 177.32 on Thursday, down 0.10% on the day at the time of writing, after reaching a record high of 177.94 earlier in the day. The pair consolidates its recent gains after four bullish days.

EUR/JPY stabilizes at 177.30, down 0.10% on the day, after hitting an all-time high at 177.94.
Japan’s sharp slowdown in wage growth reduces the likelihood of an imminent Bank of Japan rate hike.
In France, hopes for a political compromise that avoids new snap elections are supporting sentiment toward the Euro.

The Euro (EUR) remains influenced by political developments in France. The outgoing interim Prime Minister Sébastien Lecornu said on Wednesday that he would present a proposal to President Emmanuel Macron to avoid dissolving parliament, easing fears of new elections. The Élysée announced later on Wednesday that Macron will appoint a new Prime Minister within “the next 48 hours.” These comments provided a brief respite for the single currency.

On the monetary front, the European Central Bank’s (ECB) Meeting Accounts from September showed that policymakers felt no immediate pressure to adjust rates, while highlighting a highly uncertain economic outlook. Several Governing Council members noted that inflation risks remain balanced, with some seeing downside risks.

In Japan, Labor Cash Earnings rose by only 1.5% YoY in August, down from 4.1% in July and well below expectations of 2.6%. In real terms, wages fell 1.4%, marking the eighth consecutive monthly decline. These figures weaken expectations for a near-term rate hike by the Bank of Japan (BoJ).

Sanae Takaichi’s victory as leader of the ruling Liberal Democratic Party (LDP) positions her to become Japan’s next Prime Minister. Markets view her pro-stimulus fiscal stance as a sign that the BoJ will likely maintain its accommodative policy for longer.

Overall, the combination of an expected dovish policy stance in Japan and relative political calm in France continues to support EUR/JPY near record highs, although profit-taking currently limits further upside momentum.

Euro Price Today

The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the strongest against the New Zealand Dollar.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		0.29%	0.34%	0.20%	0.20%	0.03%	0.45%	0.36%
EUR	-0.29%		0.05%	-0.07%	-0.12%	-0.11%	0.18%	-0.05%
GBP	-0.34%	-0.05%		-0.14%	-0.14%	-0.18%	0.17%	-0.06%
JPY	-0.20%	0.07%	0.14%		-0.07%	-0.07%	0.21%	0.10%
CAD	-0.20%	0.12%	0.14%	0.07%		-0.08%	0.29%	0.03%
AUD	-0.03%	0.11%	0.18%	0.07%	0.08%		0.38%	0.04%
NZD	-0.45%	-0.18%	-0.17%	-0.21%	-0.29%	-0.38%		-0.23%
CHF	-0.36%	0.05%	0.06%	-0.10%	-0.03%	-0.04%	0.23%

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 Euro from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent EUR (base)/USD (quote).

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