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EUR/JPY TRIMS A PART OF INTRADAY GAINS, UP A LITTLE AROUND 157.00 AHEAD OF ECB DECISION

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  • EUR/JPY builds on the overnight recovery from a one-month low amid a modest JPY weakness.
  • An unexpected fall in Japan’s PPI, along with a positive risk tone, undermines the safe-haven JPY.
  • Bets for another BoJ rate hike in 2024 should cap the cross ahead of the key ECB policy decision.

The EUR/JPY cross gains some positive traction on Thursday and recovers further from over a one-month low, around the 155.45 region touched the previous day. Spot prices, however, retreat a few pips from the daily peak and currently trade around the 157.00 mark as investors look to the European Central Bank (ECB) interest rate decision for a fresh impetus.

The ECB is widely expected to announce a 25 basis points (bps) rate cut at the end of its September policy meeting, marking the second adjustment in its current policy easing cycle. The market focus, however, will remain glued to the updated economic projections and the forward guidance. Apart from this, ECB President Christine Lagarde's comments at the post-meeting press conference will influence the shared currency and determine the near-term trajectory for the EUR/JPY cross. 


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