Euro Surges Against Yen on Strong German GDP Data

The Euro has staged a strong comeback against the Japanese Yen after the release of German and Eurozone Q2 GDP data. The EUR/JPY pair turned flat at around 187.35, rebounding from its earlier losses.

The preliminary German GDP data showed an expansion of 0.2% Quarter-on-Quarter (QoQ), beating estimates of 0.1%. On an annualized basis, the growth remained stronger at 0.9%, surpassing forecasts of 0.6%.

Additionally, inflation data in all six states of Germany remained robust, setting a strong foundation for the upcoming flash German Harmonized Index of Consumer Prices (HICP) data release.

The Eurozone's GDP data also showed signs of improvement, with growth returning to 0.4% after a decline of 0.2% in the first quarter.