In the Asian session on Monday, the EUR/JPY trades with initial gains.
Despite good economic statistics, the Euro’s gains were restrained due to divided ECB views.
A spike of corona cases has hit the yen ahead of the Olympics.
During Asian trading hours on Monday, the EUR/JPY shows some gains. Following the previous week’s downward trend, the pair opened lower. In a small training band, however, surged fast to an intraday high of 131.83.
The EUR/JPY currency pair is currently trading at 131.76, up 0.07 percent on the day.
The euro was under pressure after ECB President Christine Lagarde stated on Friday that despite exhibiting indications of recovery from a pandemic-induced depression, the economic recovery remained fragile.
Meanwhile, Klaas Knot, President of the Dutch Central Bank and a member of the Governing Council, warned that inflation fears might not be transient. Inflation is expected to reach 1.9 percent this year, slightly less than 2 percent, according to the ECB.
After a 10-week drop, the World Health Organization (WHO) warned of a third coronavirus epidemic in Europe.
It’s worth noting that S&P 500 Futures were trading at 4,352 points, up 0.75 percent.
The Japanese yen, on the other hand, has remained under pressure as the country falls behind its counterpart in the vaccination rollout program and the highly infectious Delta form spreads.
On Saturday, Tokyo reported a massive surge in new COVID-19 cases, from 534 a week earlier to 716.
For the time being, traders are waiting for statistics from the German Markit Purchase Managers Index (PMI) and the Eurozone PMI to measure market sentiment./n
