The post EUR/JPY holds ground around 167.00 after Tokyo CPI inflation appeared on BitcoinEthereumNews.com.

EUR/JPY remains steady after the release of the softer inflation data on Friday. The Tokyo CPI increased by 2.2% YoY in July, slightly down from the previous 2.3% rise. The Euro may face challenges as the ECB remains uncertain about its policy outlook. EUR/JPY hovers around 167.00 with a positive bias during the Asian session on Friday. The EUR/JPY cross holds mild gains after the Statistics Bureau of Japan released the Tokyo Consumer Price Index (CPI) data on Friday. The headline Tokyo CPI for July increased by 2.2% year-over-year, slightly down from the previous 2.3% rise. The Tokyo CPI excluding Fresh Food and Energy went up by 1.5% YoY, compared to the earlier increase of 1.8%. Moreover, the CPI excluding Fresh Food also rose by 2.2% in July, matching market expectations. However, the EUR/JPY cross may limit its upside as the Japanese Yen may receive support as traders potentially unwind their carry trades ahead of the Bank of Japan’s two-day policy meeting, concluding on Wednesday. The BoJ is expected to raise interest rates, which causes short-sellers to close their positions and bolster the JPY. Additionally, the BoJ is widely anticipated to outline plans to taper its bond purchases to reduce massive monetary stimulus. On the Euro front, the European Central Bank (ECB) is anticipated to lower interest rates two more times this year, as price pressures are expected to persist at current levels in 2024 and only return to the bank’s target in 2025. This sentiment puts pressure on the Euro, which could limit the upside of the EUR/JPY cross. Meanwhile, a significant decline in Eurozone business activity, particularly in Germany, has heightened expectations for further interest rate cuts to stimulate economic growth. The German flash Composite Purchasing Managers Index (PMI) unexpectedly contracted in July. Euro traders will need to await…

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Filed under: News - @ July 26, 2024 5:12 am