- EUR / JPY continues to struggle to find direction.
- Eurozone data showed an ongoing expansion in the manufacturing sector.
- The optimistic mood of the market does not allow the JPY to strengthen.
After closing in negative territory on Tuesday, the EUR/JPY It rose slightly on Wednesday and was last seen posting small daily gains at 126.08. However, the pair continues to fluctuate in a two-week range, suggesting that it is struggling to make a decisive move in either direction.
The euro capitalizes on risk flows
Earlier in the day, eurozone data showed that business activity in the manufacturing sector continued to expand at a strong pace in December with the Markit manufacturing PMI rising to 55.5 from 53.8 in November. Additionally, the services PMI improved to 47.3 from 41.7 and helped the shared currency outperform its rivals.
Meanwhile, the launch of the coronavirus vaccine and renewed hopes for a trade deal between the EU and the UK provided a boost to risk sentiment and made it difficult for the JPY to find demand as a safe haven. Confirming market optimism, major European stock indices rose 0.6-1.5% on Wednesday.
On Thursday, Eurostat will release the inflation report, which is expected to show that the core consumer price index (CPI) was unchanged at 0.2% annually in November.
Technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
