- EUR/JPY drifts higher to 156.65 in Monday’s early Asian session, up 0.33% on the day,
- Rising expectations that BoJ will raise interest rates further continue to lift the Japanese Yen.
- Investors brace for the preliminary reading of the Eurozone HICP and the US ISM Manufacturing PMI report.
The EUR/JPY cross edges higher to 156.65 during the Asian trading hours on Monday. The Euro (EUR) attracts some buyers after the report that France and the UK proposed a one-month Ukraine truce. Traders await the preliminary reading of the Eurozone Harmonized Index of Consumer Prices (HICP) in February and the US ISM Manufacturing PMI, which are due later on Monday.
Late Sunday, French President Emmanuel Macron said that France and Britain are proposing a one-month truce in Ukraine to stop all air and sea conflict and attacks on energy infrastructure. This action came after the crisis discussions in London, when European leaders pledged to spend more on security and assemble a coalition to defend any truce in Ukraine.
On the other hand, the recent Japanese data showed solid economic growth and sticky inflation, which reaffirmed bets that the Bank of Japan (BoJ) will hike rates further and continue to lend support to the Japanese Yen. (JPY) The Jibun Bank Japan Manufacturing Purchasing Managers’ Index (PMI) came in at 50.8 in February versus a 48.9 flash reading and marking the softest contraction in three months.
