EUR/JPY recovers some intraday losses after BoJ Ueda’s cautious remarks

• EUR/JPY retrieves half of its intraday losses as BoJ Ueda didn’t provide meaningful cues about more rate hikes in December.
• The BoJ left its key borrowing rates steady at 0.25% in its October policy meeting.
• High GDP growth and hot inflation in the Eurozone have strengthened the Euro.

The EUR/JPY pair recovers some of its intraday losses in the European trading hours on Thursday. The cross faced sharp selling pressure in the Asian session after the Bank of Japan’s (BoJ) interest rate decision in which it left interest rates unchanged at 0.25%, as expected.

The asset has bounced back after BoJ Governor Kazu Ueda’s commentary in an early European session in which he refrained from providing any significant cues about whether the central bank will raise interest rates again in the last monetary policy meeting of this year in December. “We will scrutinize data available at the time at each policy meeting, and update our view on the economy and outlook in deciding policy,” Ueda said, The Japan Times reported.

The Japanese economy needs to be vigilant to domestic recovery and the impact of the United States (US) economy on them due to presidential elections on November 5 in which the traders seem to be pricing in the victory of former President Donald Trump over current Vice President Kamala Harris.

Though investors have underpinned the Euro (EUR) against the Japanese Yen (JPY) on Thursday, the shared currency is more than 6% higher versus the Yen in the past six weeks. Still, the Euro is outperforming its major peers on Eurozone robust preliminary Q3 Gross Domestic Product (GDP) growth and flash hot inflation data for October.

The Eurozone economy expanded at a faster-than-expected pace of 0.9% compared to the same quarter of the preceding year against 0.6% growth in the previous quarter. Meanwhile, the flash Harmonized Index of Consumer Prices (HICP) accelerated at a faster pace to 2% from 1.7% in September.