Created
: 2024.05.01
2024.05.01 15:54
The EUR/JPY cross trades in positive territory for the second consecutive day around 168.25 during the early European trading hours on Wednesday. The upside of the cross is bolstered by stronger-than-expected Eurozone economic data, which may suggest a less urgent need for more accommodative monetary policy from the European Central Bank (ECB).
Eurozone economy has escaped the mild recession suffered in Q4 of last year, according to Eurostat on Tuesday. The Eurozone Gross Domestic Product (GDP) grew by 0.3% QoQ in the first quarter (Q1) of 2024, with France and Germany both expanding by 0.2% QoQ. Meanwhile, the Eurozone headline Harmonized Index of Consumer Prices (HICP) climbed by 2.4% YoY in April, in line with the estimation. The Core CPI figure rose by 2.7% year over year in April, above the market consensus of 2.6%.
The stronger-than-expected Eurozone economic data indicated that the need for the ECB to cut the interest rate is less urgent than previously expected. This, in turn, provides some support to the Euro (EUR) and creates a tailwind for the EUR/JPY cross.
The divergence in monetary policy between the ECB and the Bank of Japan (BoJ) weighs on the Japanese Yen (JPY) against the Euro. The BoJ kept interest rates steady around zero last week. However, uncertainty about future rate hikes led to a further decline in the JPY. On the other hand, the risk-off mood and the safe-haven flows amid the ongoing geopolitical tensions in the Middle East might lift the JPY and cap the upside of the cross.
Created
: 2024.05.01
Last updated
: 2024.05.01
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy