EUR/JPY STEADIES AS ECB’S HOLD RATES, TRADERS EYE LAGARDE’S PRESSER
- EUR/JPY reaches 171.00, peaking at 171.19, after the ECB holds interest rates steady.
- ECB remarks on core inflation: slight increase due to one-off factors, though most metrics stable or decreased in June.
- ECB plans to reduce APP and PEPP portfolios, ceasing principal reinvestments, with an average monthly reduction of €7.5 billion.
The EUR/JPY remains at familiar levels after the European Central Bank decided to keep interest rates unchanged, with its deposit rate at 3.75% as expected, and would stick to its meeting-by-meeting approach, failing to provide an interest rate path. At the time of writing, the cross trades at around 171.00 after hitting a daily high of 171.19.
ECB maintains cautious stance, fails to outline clear rate path
In its monetary policy statement, the ECB mentioned that measures of core inflation edged slightly up due to “one-off factors,” but most measures remained stable or edged down in June. The ECB’s Governing Council noted that the policy “is keeping financing conditions restrictive.” It would keep it as it is “for as long as necessary” to ensure that inflation returns to its 2% goal.
Regarding its Aset Purchase Program (APP), the portfolio is declining as the EU doesn’t reinvest the principal payments. The Pandemic Emergency Purchase Program (PEPP), decided to no longer reinvest all of the principal payments
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.