FxWirePro- Currency Strength Index (4- Hour chart)- Currency pairs to watch(AUDUSD and CADJPY) for the day
FxWirePro: EUR/JPY spikes over 1.20%, breaks above 21-EMA as euro buoyed on hawkish ECB comments
Chart - Courtesy Trading View
EUR/JPY surged past 21-EMA and was trading 1.20% higher on the day at 136.29 at around 12:15 GMT, slightly below session highs at 136.43.
The single currency buoyed across the board on hawkish ECB comments, EUR/JPY poised for more gains.
ECB hawk Klaas Knot said the central bank shouldn’t rule out a 50 bps rate hike if the data warrants it.
On the data front, the first estimate of eurozone Q1 GDP growth beat expectations while Q1 employment change was robust.
Data published by Eurostat showed on Tuesday that the seasonally adjusted Q1 GDP grew at an annualized rate of 5.1%, compared to the market expectation of 5%.
Further, on a quarterly basis, GDP increased by 0.3%. Finally, the Employment Change was up 0.5% in the first quarter as expected.
The shared currency strengthens after upbeat data and hawkish ECB comments. EUR/JPY eyes 20-DMA at 136.71.