Ella 
During early European trading on Monday, the EUR/JPY cross lost traction below the 158.00 mark. Nonetheless, weaker-than-expected euro zone economic data stoked fears of a euro zone recession and created some selling pressure on EURUSD. The pair is currently trading around 157.80, down 0.20% on the day.
Market participants are awaiting the release of German third-quarter gross domestic product (GDP), which is expected to contract by 0.3% quarter-on-quarter, compared with the previous reading of a 0.2% quarter-on-quarter expansion. Since Germany is Europe’s largest economy, weaker-than-expected data could drag the euro lower.
For the yen, the Bank of Japan’s monetary policy meeting will be the focus this week. There is speculation that the Bank of Japan (BOJ) may adjust its yield curve control (YCC) approach. Economists expect the Bank of Japan to end its negative interest rate policy next year, according to a Reuters poll, with more economists now expecting the Bank of Japan to abandon its ultra-loose monetary policy.
Market participants will focus on Germany’s third-quarter gross domestic product (GDP) due later in the European session on Monday. In addition, Spain’s preliminary consumer price index (CPI) for October and Germany’s CPI will also be released. Focus will turn to the Bank of Japan’s monetary policy decision on Tuesday. The event could spark volatility in financial markets and provide direction for the EUR/JPY cross.
