Yen Falls As European Shares Inch Higher After GDP Data

(RTTNews) - The Japanese yen weakened against other major currencies in the European session on Wednesday, as investors digested key Eurozone data and looked forward to the release of U.S. CPI data later in the day for additional clues on the interest-rate outlook.

Eurostat reported that the euro area economy grew by 0.3 percent in the three months to June of 2024, bringing no changes to the initial estimate.

However, Eurozone industrial production declined by 0.1 percent month-on-month in June, much worse than expectations for a 0.4 percent rise.

Markets focus on Japan's Prime Minister Fumio Kishida's decision that he will not run in the September election for the president of the Liberal Democratic Party, due to declining public support and political scandals.

In the European trading today, the yen fell to a 2-week low of 162.34 against the euro and a 6-day low of 170.74 against the Swiss franc, from an early 2-day high of 160.59 and an 8-day high of 169.11, respectively. The yen may test support near 168.00 against the euro and 175.00 against the franc.

Against the pound, the yen edged down to 189.37 from an early high of 187.87. The GBP/JPY is likely to find support around the 196.00 region.

Against the U.S. and the Canadian dollars, the yen edged down to 147.50 and 107.59 from an early 6-day high of 146.07 and a 2-day high of 106.48, respectively. If the yen extends its downtrend, it is likely to find support around 156.00 against the greenback and 111.00 against the loonie.

The yen slid to a 2-week low of 97.87 against the Australian dollar, from an early high of 96.77. The next possible downside target for the yen is seen around the 101.00 region.

Against the NZ dollar, the yen slipped to a 2-week low of 89.50 from an early 2-day high of 88.00. On the downside, 91.00 is seen as the next support level for the yen.

Looking ahead, U.K. house price data for June, Eurozone flash GDP data for the second quarter and industrial production figures for June are due to be released in the European session.

In the New York session, U.S. mortgage approvals data, U.S. CPI data for July and U.S. EIA crude oil data are slated for release.