The EUR/JPY pair remained stable around 165.50 during the Asian trading session on Wednesday, as the Japanese Yen (JPY) found support from hawkish minutes of the Bank of Japan‘s (BoJ) latest meeting. The minutes revealed broad consensus among BoJ board members to continue raising interest rates, citing alignment with the central bank’s inflation and economic targets.
Meanwhile, Japan’s Jibun Bank Services Business Activity Index fell to 49.7 in October, down from 53.1 in September, marking the first contraction in services activity since June, albeit a slight one. The decline reflected slower sales, which weighed on business sentiment.
Eurozone Economic Data Alters ECB Rate Cut Expectations
In contrast, the Eurozone’s positive Gross Domestic Product (GDP) data prompted traders to reduce expectations for a more aggressive interest rate cut at the European Central Bank‘s (ECB) December policy meeting. While markets still anticipate a 25 basis point reduction in the Deposit Facility Rate, the latest data has tempered expectations for a larger cut.
Attention is now shifting to upcoming PMI data for Germany and the broader Eurozone, as well as speeches from ECB President Christine Lagarde and Vice President Luis de Guindos, which could provide further clues on the ECB’s policy direction.
US Election Update: Trump Leads in Key States
In the US presidential race, early exit polls from Wisconsin show Republican candidate Donald Trump leading with 56% of the vote, compared to 42.5% for Kamala Harris, based on 7.5% of votes counted. In North Carolina, exit polls suggest a tight contest between Trump and Harris, while in Michigan, Harris’ lead has narrowed from 61% to 53% with 12% of votes counted. These early results highlight the uncertainty of the race, with several key states still in play.
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