Yen Rebounds on Ishiba's Victory, Euro Down on Inflation Data
The Japanese yen rebounded on Friday after Shigeru Ishiba, a critic of past monetary stimulus, won Japan's leadership contest. The yen gained about 1% as markets anticipate further rate hikes under his leadership.
Meanwhile, the euro fell 0.45% after inflation data from France and Spain came in lower than expected, prompting bets on an October rate cut from the European Central Bank.
China's Stimulus Measures Boost Risk Appetite
China's recent stimulus measures, including reserve requirement cuts and interest rate reductions, have boosted risk appetite, leading to gains in stocks, commodities, and risk-sensitive currencies.
Sterling and Dollar Remain Steady
Sterling remained slightly lower, while the dollar stayed on the back foot as traders priced in further easing for the rest of the year. Investors will monitor the personal consumption expenditures price index due later on Friday.