EUR/JPY exhibits potential for appreciation, driven by improved global risk sentiment following the announcement of moderated tariffs on Chinese imports. This positive sentiment is tempered by ongoing safe-haven demand for the Japanese Yen. The currency pair experienced intraday volatility, trading near the 163.00 level during European trading hours. The Euro is supported by increased demand for risk-sensitive assets, spurred by the aforementioned tariff announcement. While US President Trump announced less severe tariffs on specific Chinese imports, he clarified that previously anticipated exemptions would not be implemented. Concurrently, German Chancellor-in-waiting Friedrich Merz has voiced concerns regarding the potential for President Trump’s economic policies to precipitate an earlier-than-expected financial crisis. Merz has also advocated for a new transatlantic trade agreement, proposing the elimination of tariffs to benefit both parties.
