Euro Holds Gains Against Yen Amid Uncertainty Over Future Intervention Plans
The Euro has maintained its two-day gains against the Japanese Yen at around 182.25 during Thursday's European trading session, but investors remain cautious about the currency's strength due to uncertainty over future intervention plans from the US and Japan.
Last week, Japan's Ministry of Finance confirmed a joint US-Japan intervention to stabilize the Yen's value, following which Japan's Finance Minister Satsuki Katayama stated that Japan 'won't hesitate to carry out more forex intervention with the US'.
Commerzbank notes that while the recent rebound in the Yen is impressive, it may not be sustainable without further coordinated interventions from the Bank of Japan and US authorities. The bank highlights comments from Treasury Secretary Scott Bessent suggesting that the US 'would be willing to act again if necessary,' but emphasizes that investors need convincing of credible and enduring support.
On the Eurozone front, investors await Retail Sales data for June, which is expected to show a moderate 0.1% MoM increase in consumer spending, slower than the previous reading of 0.2%. The data will be released at 09:00 GMT.