DailyBubble News
DailyBubble News

EUR/JPY continues higher after Eurozone inflation data keeps in line

The EUR/JPY pair is trading in the mid 164.00s, up slightly on Wednesday. This increase is attributed to the release of Eurozone inflation data, which showed no change from initial estimates. The Euro rose following this news, possibly due to lower market expectations caused by recent dovish comments from ECB officials.

On the other hand, comments from Japan’s Chief Cabinet Secretary about closely monitoring FX movements and being prepared for interventions to support the Yen may have tempered the EUR/JPY’s upside. This verbal intervention suggests that Japan is considering direct intervention in FX markets to strengthen the Yen, which could weaken the EUR/JPY pair.

Recent comments from Federal Reserve Chairman Jerome Powell regarding inflation and interest rates also impacted the market. Powell’s remarks led to a rise in the US Dollar, with USD/JPY surpassing 154.00. A series of speeches by key ECB members on Wednesday, including Christine Lagarde, could further influence EUR/JPY volatility.

Meanwhile, Japanese trade data released overnight showed a slight moderation in exports and a decrease in imports, resulting in a surplus trade balance of ¥366.5 billion. Overall, fluctuations in the EUR/JPY pair are likely to continue as market factors evolve.

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