EUR/JPY consolidates near 132.20 ahead of ECB’s Lagarde speech
- EUR/JPY failed to capitalize on the previous day’s gains and remained muted on Friday.
- The Euro remained grounded on upbeat economic data and ECB optimistic view on the economy.
- Yen flattered against majors on weaker economic recovery and spread of the highly contagious Delta variant.
EUR/JPY remains muted on Friday in the European trading hours. The pair rose from the low of 131.27 in the past two sessions and touched the high of 132.43 a day earlier.
At the time of writing, EUR/JPY is trading at 132.13, down 0.01% for the day.
The single currency remained resilient following the strong economic data. The Eurozone Jobless Rate fell to 7.9% in May, the lowest level since May 2020, and marginally below the market estimate of 8.0%. The IHS Markit Eurozone Manufacturing PMI grew to a new record of 63.4 in June, above the market consensus of 63.1.
Meanwhile, ECB President Christine Lagarde in the previous week said that the central bank is confident that the rebound in the global demand and a rapid vaccination program could result in a robust economic recovery.
It is worth noting that S&P 500 Futures were trading at 4,319 with 0.52% gains.
On the other hand, the Japanese yen is under pressure on the concerns of rising coronavirus infections. The Japanese government plans to extend its COVID-19 lockdown in Tokyo and other states by two weeks to a month.
Fears that extended lockdown could further hamper the fragile economic recovery kept investors away from the Japanese yen.
The Unemployment Rate in Japan rose to 3% in May, the highest level since December 2020. The data released in the previous week.
As for now, the market dynamics continue to influence the pair’s performance for the time being.
Traders keep their eye on the Euro Producer Price Index (PPI) data to gain some fresh trading impetus.
EUR/JPY additional levels
Author
Rekha Chauhan
Independent Analyst
Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.
