Eurozone inflation fell more than expected in June, reducing pressure on the ECB to hike rates in July.
The EUR/JPY cross slipped to 184.95 in early European trading Thursday, extending losses below the 185.00 mark. The move follows softer-than-expected Eurozone inflation data for June, which eased concerns over aggressive monetary tightening by the European Central Bank.
June inflation figures came in below forecasts, reinforcing expectations that the ECB may pause its rate-hiking cycle at its upcoming July meeting. The cross had previously held a near-term bullish bias but faced downward pressure amid shifting policy outlooks.
Markets are now pricing in a higher probability of a pause, with traders monitoring ECB commentary for further guidance.