EUR/JPY trades with initial gains on Monday in the Asian session. The Euro gains limited on mixed ECB views, despite strong economic data. Yen suffers from a surge in corona cases ahead of the Olympics. EUR/JPY prints some gains on Monday in the Asian trading hours. The pair opened lower following the previous week’s downside momentum. However, rose quickly to touch an intraday high at 131.83 in a narrow training range.
At the time of writing, EUR/JPY is trading at 131.76, up 0.07% for the day. The shared currency came under pressure after the ECB President Christine Lagarde said on Friday that economic recovery remained fragile, despite it showing signs of revival from a pandemic-induced slump.
Meanwhile, Dutch Central Bank President and member of the Governing Council Klaas Knot warned that fear of inflation might not be temporary. This year the ECB forecast inflation of 1.9%, slightly below 2%. The World Health Organization (WHO) warned of a third coronavirus wave in Europe as cases rose after a 10-week decline.
It is worth noting that S&P 500 Futures were trading at 4,352 with 0.75% gains. On the other hand, the Japanese yen remained pressurized as the country lags behind its counterpart in the vaccination rollout program amid the rising highly infectious Delta variant.
Tokyo recorded a huge increase in the new COVID-19 cases on Saturday, from 534 reported a week earlier to 716 cases. As for now, traders await the German Markit Purchase Managers Index (PMI) data, Eurozone PMI data to gauge the market sentiment.
