EUR/JPY reaches a new 11 months in the medium of mixed data of the Eurozone and a weak yen

• The EUR/JPY extends its winning streak, touching the highest level since July 2024.
• The PMI data of the Eurozone indicates a fragile but stable recovery, with a slight rebound in the services and a manufacturing that remains weak.
• The president of the ECB, Lagarde, asks for a faster implementation of the digital euro; Nagel points out that the purchase of bonds should only be made in emergencies.

The euro (EUR) advances in front of the Japanese yen (JPY) for the third consecutive day on Monday, reaching its highest level in almost eleven months, since the constant demand for euros and a persistently weak yen feed new purchases. Operators are committed to the European Central Bank (ECB) will be cautious by reducing rates too fast, while the commitment of the Bank of Japan (BOJ) with a lax monetary policy continues to drag the Yen, keeping the Eur/JPY in a firm ascending path.

The EUR/JPY crossing progresses, quoting just below the intradic peak of 169.72. At the time of writing, the PAR is about 169.21, rising approximately 0.53% in the day, with a technical impulse that is still favorable for more profits.

New Monday data showed that the Eurozone economy is still on a fragile recovery path. The HCOB purchasing managers composed of purchasing managers (PMI) for the Eurozone remained stable at 50.2 in June, slightly below the 50.5 forecasts. The services sector showed a slight improvement, with the PMI of services rising to 50.0 from 49.7, indicating a stabilization in the activity after the recent weakness. However, the manufacturing continues to fight, with the manufacturing PMI without changes in 49.4, below the expectations of 49.8 and pointing out a persistent pressure on the growth perspectives of the region.

Meanwhile, Japan’s last numbers offered a more optimistic tone. The PMI composed of Japan Jibun Bank rose to 51.4 in June from 50.2 previously, while the manufacturing PMI re -entered the territory of expansion in 50.4, the first positive reading for the sector in more than a year and exceeding market forecasts. The PMI of Services also rose to 51.5 from 51.0, indicating constant growth in the economy services.

Adding support to the euro, the president of the ECB, Christine Lagarde, urged EU legislators to advance with the legislation for a digital euro on Monday, considering it vital for the financial sovereignty of Europe. Separately, the president of Bundesbank, Joachim Nagel, emphasized that the purchase of large -scale bonds should be reserved for rare emergencies, stressing that interest rates will continue to be the main policy tool. This reinforces the opinion that the ECB will avoid an excessive stimulus, keeping the euro well backed in front of the yen.

On the other hand, the Bank of Japan maintained its key rate without changes last week and delineated a gradual plan to reduce its bond purchases in the next two years. The Governor Ueda reiterated that any additional hardening will depend on the inflation reaching the target levels, noting that the policy will continue to be relatively accommodating compared to other main central banks. This politics gap continues to weigh on Yen and keeps the EUR/JPy biased up.