EUR/JPY Cross Gains on Improved German Business Sentiment

The EUR/JPY cross gained 0.15% on Tuesday, as the Euro strengthened following better-than-expected German business sentiment data.

Germany's IFO Institute Business Climate Index improved to 88.8 in August from a revised 86.7 in July, beating market expectations of 87.2.

The increase indicates improving business sentiment in Germany and provides support to the single currency.

Despite Japan's fiscal concerns and interest-rate gap with other major economies weighing on the Japanese Yen, investors remain concerned about Japan's deteriorating public finances and pressures for expansionary fiscal policy.