EUR/JPY Daily Gains Capped Around 125.00

After briefly testing daily highs in the 125.00 area, EUR / JPY triggered a downward correction to the current 124.80 area to maintain modest gains so far.

EUR / JPY reversed the weekly negative start and gained almost a full cent from Monday’s lows in the 124.00 area. Sentiment around the US dollar continues to put the European currency and other currencies under pressure, forcing the pair to abandon the upper bound of the range.

At the same time, risk appetite trends continue to dominate the markets, especially with the increasing numbers of Covid-19 cases and doubts about the economic recovery and tension between the United States and China.

On the data front, producer prices in the Eurozone rose by 0.7% on a monthly basis and contracted by 3.7% on an annual basis through June, both readings were higher than expected.