Investors await June Eurozone PMI data and ECB President Lagarde’s comments for clues on growth and monetary policy.
EUR/JPY climbed 0.16% to near 185.30 on Monday as markets focused on upcoming Eurozone PMI releases and European Central Bank communications. The preliminary HCOB PMI data for June, due Tuesday, will offer insights into the region’s economic momentum amid persistent inflation concerns.
The ECB’s deposit rate stands at 2.25%, with markets pricing in at least one more 25-basis-point hike. ECB policymaker Pierre Wunsch suggested another increase could come next month if inflation pressures broaden beyond energy. Meanwhile, the Japanese Yen remained weak despite warnings from Japan’s Finance Minister about excessive currency moves.
Investors are also monitoring comments from ECB President Christine Lagarde for further guidance on the policy outlook. The Yen’s decline reflects ongoing concerns over Japan’s economic resilience and geopolitical risks.