EUR/JPY juggles below 150.00 as focus shifts to ECB/BoJ’s interest rate policy

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EUR/JPY juggles below 150.00 as focus shifts to ECB/BoJ’s interest rate policy
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EUR/JPY juggles below 150.00 as focus shifts to ECB/BoJ’s interest rate policy – by Sagar_Dua24 EURJPY ECB BOJ Recession Inflation

by the European Central Bank and the Bank of Japan , which will be announced this week.

An interest rate hike of 25 basis points by the ECB to 4% is widely anticipated by the market participants despite deepening signs of recession in the. The final reading of Q1 Gross Domestic Product contracted by 0.1%. Investors should note that factory activities in the shared continent are constantly declining, which bolsters the odds of further contraction in GDP figures.

Investors should note that the German economy has already registered a recession after reporting two consecutive quarters of contraction.has no other option than to raise interest rates further despite fears of recession. The inflation rate in Eurozone is at 6.1%, which is three times more than the desired rate.

Investors should be aware that the majority of inflation in Japan is being contributed by higher import prices, which is ineffective to keep inflation comfortable above 2%. Meanwhile, BoJ policymaker Masazumi Wakatabe said in a Bloomberg TV interview early Monday, “The communication would be very interesting” at the upcoming policy meeting this Friday. He further added, “It’s still too early to call that this inflation has been sustainable and stable.”

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