Cooling Eurozone inflation pressures the Euro, halting a four-day rally against the Yen near 185.40.
The Euro fell against the Japanese Yen, with EUR/JPY trading around 185.40 in European hours, ending a four-day winning streak. The decline follows softer-than-expected Eurozone inflation data, which weakened the Euro’s appeal.
Earlier, the preliminary Harmonized Index of Consumer Prices (HICP) indicated a slowdown in price growth, reducing expectations for aggressive European Central Bank rate hikes. The cross had previously gained on broader USD weakness but reversed course after the data release.
Markets are now assessing the implications for ECB policy, with the Euro remaining under pressure against the Yen.