Bullish
EUR/JPY reaches 12-week high of 186.67 amid ECB's hawkish stance and yen weakness
EUR/JPY has surged to a 12-week high of 186.67, driven by the European Central Bank's (ECB) hawkish forward guidance and ongoing yen weakness. ECB President Christine Lagarde highlighted upside inflation risks, suggesting potential rate hikes in September. Meanwhile, the Japanese yen continues to weaken, with the Bank of Japan's (BoJ) intervention efforts proving limited.
Key points
- ECB signals potential rate hikes in September, supporting euro strength.
- Yen weakens despite BoJ's intervention pledges, reaching 40-year lows against the dollar.
- Eurozone's Composite PMI rises to 51.9 in July, indicating moderate economic expansion.
Sources
AI-generated from public news sources. Not financial advice.
