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EUR/JPY rises on Yen weakness after coalition confirmation, Euro weighed by data

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EUR/JPY rises on Yen weakness after coalition confirmation, Euro weighed by data

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New update 2025.10.20 18:15
EUR/JPY rises on Yen weakness after coalition confirmation, Euro weighed by data

update 2025.10.20 18:15

  • EUR/JPY rises on Monday, supported by JPY weakness after confirmation of a political coalition in Japan.
  • Markets expect incoming Prime Minister Takaichi to favor expansionary fiscal policy and delay monetary tightening.
  • In Europe, Germany's unexpected PPI contraction and France's credit downgrade weigh on the Euro.

EUR/JPY edges higher on Monday, gaining 0.10% to 175.70 at the time of writing. After hitting a two-week low on Friday, the pair benefits from renewed Japanese Yen (JPY) weakness amid a shifting political landscape in Tokyo.

According to the latest reports from Kyodo, Japan's Liberal Democratic Party (LDP) and the Japan Innovation Party (JIP, known as Ishin) are set to finalize a coalition agreement. This alliance is expected to pave the way for Sanae Takaichi to become Japan's first female Prime Minister in Tuesday's parliamentary vote. Takaichi, an ally of former Japanese Prime Minister Shinzo Abe, advocates for strong public spending and loose monetary policy, reducing expectations of further tightening from the Bank of Japan (BoJ).

However, the new coalition remains fragile and still lacks a majority, which could limit the government's ability to implement bold reforms. At the same time, some BoJ officials, including Deputy Governor Shinichi Uchida, reiterated on Friday that the central bank would continue to adjust policy if economic and inflation conditions evolve as expected. This cautious message tempers speculation about a prolonged easing stance.

In the Eurozone, data published Monday by Destatis showed a 0.1% decline in Germany's Producer Price Index (PPI) for September, against expectations for a 0.1% increase. This marks the third consecutive monthly contraction, adding to concerns about the country's industrial outlook. Meanwhile, S&P Global Ratings' downgrade of France's credit rating to A+ increases pressure on French debt and the broader European bond market. These factors limit the Euro's (EUR) upside potential.

Euro Price Today

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

USD EUR GBP JPY CAD AUD NZD CHF
USD -0.09% -0.00% -0.02% 0.08% -0.01% -0.20% -0.14%
EUR 0.09% 0.09% 0.07% 0.16% 0.08% -0.12% -0.04%
GBP 0.00% -0.09% -0.04% 0.07% -0.02% -0.19% -0.13%
JPY 0.02% -0.07% 0.04% 0.10% 0.03% -0.23% -0.11%
CAD -0.08% -0.16% -0.07% -0.10% -0.02% -0.30% -0.21%
AUD 0.01% -0.08% 0.02% -0.03% 0.02% -0.21% -0.13%
NZD 0.20% 0.12% 0.19% 0.23% 0.30% 0.21% 0.08%
CHF 0.14% 0.04% 0.13% 0.11% 0.21% 0.13% -0.08%

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).


Date

Created

 : 2025.10.20

Update

Last updated

 : 2025.10.20

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