EUR/JPY Stays Close to 163.50 as Traders Wait for Eurozone Inflation Report
The EUR/JPY pair is moving near 163.50 as traders are being careful ahead of important inflation data from the Eurozone. This report will show how prices are rising across Europe, and it could affect what the European Central Bank (ECB) does next with interest rates.
Recently, inflation in Germany went up slightly. The HICP (Harmonized Index of Consumer Prices) rose to 2.4% in May from 2.2% in April. Even though this is a bit higher, markets still believe that the ECB might cut interest rates soon. Some expect a 0.25% rate cut in June, with more cuts possible by the end of the year.
In Japan, the government is also paying close attention to the Yen. Japan’s Finance Minister said they are ready to act if there are big or sudden changes in the Yen’s value. However, uncertainty remains about what the Bank of Japan will do next with its policies, and that is keeping pressure on the Yen.
Impact:
The EUR/JPY could see more movement after the inflation data is released. If inflation is lower than expected, the ECB might cut rates soon, which could weaken the Euro. Japan’s next steps could also affect the Yen.