- EUR/JPY trades with minute losses on Monday in the early European session.
- The Euro came under pressure after the cautious view of ECB policymakers on inflation.
- Yen gains on the optimism that the new government would bring more stimulus to the economy.
EUR/JPY prints losses on Monday in the early European trading hours. The pair opened lower recovered swiftly to intraday high but failed to sustain the movement.
At the time of writing, EUR/JPY is trading at 130.31, down 0.05% for the day.
The shared currency came under renewed pressure as the rising inflation governs the upcoming meeting of the European Central Bank (ECB) on Thursday. There is debate over the ECB’s members some preferred to reduce the asset purchase program, while few members debate over the need to maintain the stimulus.
It is worth noting that S&P 500 Futures were trading at 4,535 down 0.034%.
On the other hand, the Japanese Yen managed to gain some traction on optimism that the next leadership will announce huge stimulus to support the economy. The sentiment was also boosted after news surfaced that a Japan panel proposed relaxing some COVID-19 restrictions, possibly in Autumn.
As for now, traders wait for the German Factory Orders, Construction Purchasing Managers Index (PMI), and EU PMI to trade fresh trading impetus.