EUR/JPY consolidates near 132.20 as risk sentiment improves
- EUR/JPY trades with some initial gains on Monday in the Asian session.
- The Euro gains on ECB’s optimistic economic view and upbeat data.
- Yen surrenders gains on fragile economic recovery and surge in corona cases ahead of Olympics.
EUR/JPY prints fresh gains on Monday in the Asian trading hours. The pair rose sharply in the previous week and reached a multi-month high near 132.70.
At the time of writing, EUR/JPY is trading at 132.22, up 0.05% for the day.
The Eurozone Lending Activity rose 3.9% in May as compared to a 3.8% rise in the previous month. The readings suggested the largest increase in household lending since December 2008. The IHS Markit Composite PMI jumped to 59.2 in June, slightly above the market expectations at 58.8.
The IHS Markit Eurozone Manufacturing PMI remained unchanged at 63.1 in June, above the market consensus of 62.1.
Meanwhile, ECB President Christine Lagarde remained confident on the prospects of swift economic recovery backed by strong global demand and a faster than anticipated increase in consumer spending. The shared currency gained following the remarks.
The EU lifts the curb amid rising cases of Delta strain of COVID-19, while globally new restrictions are imposed by the governments.
It is worth noting that S&P 500 Futures were trading at 4,277 with 0.14% gains.
On the other hand, the Japanese yen posted some minor gains after the government decided to lift the COVID-19 restrictions in Tokyo and eight other provinces in the previous week.
The Japanese government retained its stance that some economic sectors are still in a weaker state due to the COVID-19 pandemic in its June economic review.
As per the Bank of Japan’s (BOJ) June meeting summary of opinions, inflationary pressure is expected to remain subdued due to the deflationary mindset.
As for now, the market dynamics continue to influence the pair’s performance in the absence of any major fundamental catalyst.
EUR/JPY additional levels