The post EUR/JPY sticks to modest recovery gains amid notable JPY supply, remains below mid-158.00s appeared on BitcoinEthereumNews.com.

EUR/JPY gains some positive traction on Monday amid the emergence of some JPY selling. A downward revision of Japan’s Q2 GDP growth might complicate BoJ’s plan to raise rates. A combination of factors weighs on the Euro and caps any meaningful upside for the cross. The EUR/JPY cross stages a goodish recovery from the 157.40-157.35 region, or over a one-month low touched on the first day of a new week and reverses a part of Friday’s losses. Spot prices climb to a fresh daily peak during the early European session and currently trade just below mid-158.00s amid a broad-based Japanese Yen (JPY) weakness. Official data published earlier today showed that Japan’s economy grew at a slightly slower pace, by an annualized 2.9% in the April-June quarter as compared to a 3.1% rise in the preliminary estimate. This comes on top of sluggish consumer spending growth in July, which might complicate the Bank of Japan’s (BoJ) plans to hike interest rates further in the coming months. Apart from this, a stable performance around the equity markets is seen undermining the safe-haven JPY and acting as a tailwind for the EUR/JPY cross.  That said, an unexpected rise in Japan’s real wages for the second straight month in July keeps the door open for another BoJ rate hike in 2024. Moreover, the BoJ Governor Kazuo Ueda reiterated last week that the central bank will continue to raise interest rates if the economy and prices perform as expected. Apart from this, renewed worries about a US economic downturn, along with persistent geopolitical tensions, should limit losses for the JPY and cap the EUR/JPY cross amid some follow-through selling around the shared currency.  Growing acceptance that the European Central Bank (ECB) will cut interest rates again in September in the wake of declining inflation in…

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Filed under: News - @ September 9, 2024 8:18 am