Prior to Japan's GDP and Lagarde's speech, the EUR/JPY struggles around 143.50
The EUR/JPY is struggling to continue its climb over 143.50. The ECB's expected future monetary policy action will be determined by Christine Lagarde's upcoming address. A decline in Japan's GDP may necessitate additional policy easing by the BOJ.

The EUR/JPY pair is seeing selling pressure after failing to surpass the crucial 143.50 barrier during the Asian session. After a meteoric comeback from below 141.00 on Monday, the cross is revealing indications of weariness in its upward velocity. After the announcement of disappointing Eurozone Retail Sales data on Monday, the cross gained momentum.
Monthly Retail Sales data for the Eurozone decreased by 1.8%, exceeding predictions of a 1.7% decline. In addition, yearly economic data contraction was 2.7%, compared to the consensus estimate of 2.6%. A drop in household demand shows that the European Central Bank's (ECB) policy tightening measures are doing their job successfully. This could lead businesses to seek price reductions for goods and services in order to maintain sales.
A drop in retail demand is undeniable evidence that inflation will fall in the future, but the inflation monster is enormous compared to the 2% inflation target. This could force the ECB to continue increasing interest rates.
The Deccan Herald said that European Economy Commissioner Paolo Gentiloni stated on Monday, prior to the Eurogroup meeting, that Europe will enter a recession this winter and growth will not return until spring. He added, "Inflation Appears to Have Reached Its Peak; Decline Will Be Gradual."
Thursday's speech by Christine Lagarde, president of the European Central Bank, will be closely watched by markets moving ahead. The expected monetary policy action taken by the ECB at its December meeting will be determined by the president's address.
On the Tokyo front, the release of third-quarter Gross Domestic Product (GDP) figures will be of great importance. Japan's GDP is predicted to drop by 1.1% on an annualized basis, compared to the preceding contraction of 1.2%. In addition, quarterly figures are anticipated to decline by 0.3%, comparable to the previous report. A decline in Japan's GDP may necessitate additional policy easing by the Bank of Japan (BOJ).
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