- Euro among worst performers in the market, ahead of Thursday’s ECB meeting.
- EUR/JPY head for the lowest close since April 2017.
The EUR/JPY pair accelerated to the downside on Tuesday, particularity after the beginning of the American session. It bottomed at 120.48, the lowest intraday level since January and now is on its way to the weakest daily close in more than two years.
A slide of the Euro across the board triggered the decline in EUR/JPY. The common currency remains under pressure ahead of the European Central Bank meeting. The Euro remained around the lows despite an improvement in Eurozone Consumer Confidence data. The index increased from -7.2 to -6.6 in July.
“This slight green shoot will not make a difference to policymakers at the European Central Bank on Thursday, who are set to decide on possible stimulus measures. It is a good start to this month’s surveys though as improved confidence helps growth in household consumption in the third quarter. As industrial performance remains weak for now, the consumer is key for continued GDP growth in 3Q”, said ING analysts. The ECB is expected to change its forward guidance and hint at future rate cuts.
The pair stands at 120.55/60 after being able to rebound back above 120.50; it is down 45 pips from yesterday’s close. It is sharply lower despite the stabilization of the yen. The USD/JPY is higher on the back of a stronger US Dollar but also amid rising equity prices in Wall Street.
Technical Levels
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