- EUR/JPY is reflected from below 162.00, when the German Friedrich Merz was confirmed as a fresh chancellor.
- German Merz failed to secure the absolute majority in the first voting process in the Bundestag.
- The threat of the Trump tariff for pharmaceutical imports was increased by the unthreatening JPA demand.
The EUR/JPY pair broke above 162.00 during the North American trade session after attracting offers near 161.60, i.e. the end -of -end. The couple reflects as a conservative leader of Germany, Friedrich Merz, protects the absolute majority after receiving 325 votes in the second attempt in the Bundestag or lower parliamentary chamber.
Friedrich Merz received 310 votes in the first attempt, six miniature out of 316 required to be elected to the German Chancellor, despite the CDU/CSU and Socotcrats collectively ordering 326 votes in the Bundestag.
Confirmation of Friedrich Merz as a chancellor reduced the fears of political instability and is expected to augment defense expenditure approved in March.
However, decisive expectations yes European Central Bank (EBC) It will reduce interest rates at the June political meeting will reduce the augment in euro (EUR). ECB is expected to reduce interest rates About 25 base points (BPS). It would be the seventh reduction of the interest rate by the ECB in a row. The reasoning of ECB Dovish assumes that it is very convinced that Euro zone Inflation is on the right way to return to the central bank’s goal of 2% to the end of the year.
In the meantime United States (USA) President Donald Trump has increased his unthreatening demand. Trump threatened to apply tariffs on pharmaceutical imports, which will be announced in two weeks.
Japanese price Jena today
The table below shows the percentage change of Japanese Jen (JPY) compared to the main currencies. Japanese Jen was the strongest against the Swiss France.
| USD | EUR | GBP | JPy | BOOR | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.22% | -0.55% | -0.59% | -0.23% | -0.14% | -0.45% | 0.22% | |
| EUR | 0.22% | -0.34% | -0.36% | -0.02% | 0.07% | -0.23% | 0.44% | |
| GBP | 0.55% | 0.34% | -0.04% | 0.32% | 0.44% | 0.11% | 0.81% | |
| JPy | 0.59% | 0.36% | 0.04% | 0.35% | 0.45% | 0.22% | 0.82% | |
| BOOR | 0.23% | 0.02% | -0.32% | -0.35% | 0.09% | -0.22% | 0.48% | |
| Aud | 0.14% | -0.07% | -0.44% | -0.45% | -0.09% | -0.31% | 0.39% | |
| NZD | 0.45% | 0.23% | -0.11% | -0.22% | 0.22% | 0.31% | 0.69% | |
| CHF | -0.22% | -0.44% | -0.81% | -0.82% | -0.48% | -0.39% | -0.69% |
The heat map shows percentage changes in the main currencies towards each other. The basic currency is collected from the left, and the quote currency is collected from the upper order. For example, if you choose Japanese yen on the left column and move along the horizontal line to the American dollar, the percentage shift displayed in the field will represent JPy (base)/USD (quote).
On the national front, investors are waiting for the Bank of Japan (Bij) monetary policy reports, which will be published on Wednesday.
