EUR/JPY trades modestly higher on Tuesday, hovering around 185.10 at the time of writing, up 0.07% on the day.
The pair is supported by a resilient Euro (EUR) despite softer-than-expected German inflation data
At the same time, the Japanese Yen (JPY) remains weighed down despite repeated warnings from Tokyo officials over excessive currency moves. Data released in Germany showed that inflation slowed more than expected in June. The Consumer Price Index (CPI) rose 2.3% YoY, down from 2.6% in May and below the market forecast of 2.5%.
Meanwhile, the Harmonized Index of Consumer Prices (HICP), the European Central Bank’s (ECB) preferred inflation gauge, also came in below expectations, rising 2.4% annually after 2.7% previously, while falling 0.2% on a monthly basis. The figures reinforce signs that inflationary pressures continue to ease in the Eurozone’s largest economy. Earlier in the day, Dutch Central Bank Governor Olaf Sleijpen said that lower energy prices following the easing of Middle East tensions should help cool inflation further.