EUR/JPY Dips Close to $142, Due to Bad Mood
EUR/JPY is striving to break its raging price action towards the downside. The EUR/JPY is trading at 142.28 – 1.42.70 during the Asian trading period. Also, the pair experienced a good dip yesterday (Thursday), following its failure to exceed the 7-years high of 144.21. In addition, the current market feeling is supporting the JPY versus common currency upward forces.
On the other hand, the EUR stays weak because the Central Bank of Europe (ECB) paid no attention to rising inflation. In addition, instead of for the ECB to declare a biased interest rate to curtail inflation, they maintained an unbiased stand. Experienced EUR/JPY traders are waiting for the action of the ECB President, to make the right trading decisions. Nevertheless, the ECB retained its welcoming principle.
Additional EUR/JPY Price Factors
Concerning Lagarde’s speech, the ECB’s Asset Purchasing Program will be stopped before next month: July. They will then advance their Interest rate pattern. The interest rate increased will for July by 25 bps, and by September it could be raised above 50 bps. Also, afflicting families in Europe. This is because rising prices caused by Ukraine – Russia war, will cause the inflation rate to increase. This will subsequently affect the EUR/JPY price action.
As per the JPY, the super-relaxed money policy will hold the JPY bulls at bay. The Bank of Japan (BoJ) keeps limiting its ten years of bond proceed at twenty-five percent, which is lower than that of any of the Group of ten nations. Moreover, BoJ has gotten to its inflation target: beyond 2%, this doesn’t mean the wise money policy should end. This is because elevated price forces are created by elevated fuel and commodity prices.
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