EUR/JPY Breaks Above 172.00 as ECB Pause Hopes Boost Euro
The Euro to Japanese Yen pair has jumped above the 172.00 mark again, now trading near 172.10 in Monday’s Asian session. Traders are increasingly betting that the European Central Bank (ECB) will take a break from cutting interest rates.
Recent comments from ECB officials suggest they will decide policy step by step and rely heavily on incoming data. This cautious tone is giving the Euro a lift against major currencies, including the Yen.
Adding to the positive sentiment, markets are buzzing about possible talks between Donald Trump and Vladimir Putin. Investors hope such a meeting could help ease tensions in the ongoing Russia-Ukraine conflict. Any sign of peace tends to boost risk appetite in global markets.
On the other hand, the Japanese Yen is seeing some support after the Bank of Japan (BoJ) signaled it is still open to raising interest rates further. However, the stronger Euro is keeping the pair well above key support levels.
For now, traders are watching upcoming economic data and central bank speeches for fresh clues. If optimism around the ECB pause continues, EUR/JPY could test new highs.
Impact:
* A pause by the ECB may keep the Euro strong and attract carry trade positions.
* Hopes of geopolitical stability could reduce safe-haven demand for the Yen, supporting further Euro gains.
