The Euro remains steady against the Yen as ECB rate hikes contrast with fragile German consumer confidence, capping gains.
EUR/JPY traded at 183.90, up 0.06%, as markets weighed the European Central Bank’s hawkish stance against weak economic signals from Germany. The ECB raised its deposit rate by 25 basis points to 2.25% in June, with officials signaling further tightening to combat inflation.
German consumer confidence improved slightly to -29.2 in July from -29.7 in June but missed expectations of -27.5. The data underscores fragility in the Eurozone’s largest economy, tempering the ECB’s aggressive policy rhetoric.
The Bank of Japan’s cautious approach also limited volatility, as investors await clearer signals on monetary divergence between the two regions.