EUR/JPY faces challenges due to risk-off mood following US President-elect Donald Trump's announcement of import tariffs.
The Japanese Yen may struggle due to uncertainty surrounding the BoJ’s future rate hikes.
The ECB is widely anticipated to implement a 25 basis point rate cut in December.
EUR/JPY remains in negative territory despite trimming intraday losses, trading near 161.20 during European hours on Tuesday. The EUR/JPY cross faces headwinds as the safe-haven Japanese Yen (JPY) holds firm, bolstered by heightened global risk aversion following US President-elect Donald Trump's renewed tariff threats on China, Mexico, and Canada.
These developments have dampened market sentiment, adding downward pressure on European economies and weighing on the risk-sensitive Euro. As a result, the EUR/JPY cross struggles to gain traction amid a challenging external environment.
However, the Japanese Yen (JPY) may struggle due to uncertainty surrounding the Bank of Japan's (BoJ) future rate hikes. BoJ Governor Kazuo Ueda has hinted at the possibility of another interest rate hike as early as December. Traders are focused on upcoming Tokyo Consumer Price Index data for November, which is seen as a leading indicator of nationwide price trends.
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