Euro Treads Water as ECB Interest Rate Hike Looms

The Euro (EUR) is trading softly against the Japanese Yen (JPY) at around 185.50, ahead of the release of Eurozone flash Harmonized Index of Consumer Prices (HICP) data for August.

The HICP figures from Germany, France, and Spain showed that price pressures accelerated, which is expected to have a significant impact on European Central Bank (ECB) interest rate expectations.

According to market experts, the ECB is likely to raise interest rates in its policy meeting this month. Analysts at Danske Bank highlight that Japan Government Bond Yields have surged, providing a cushion to the Japanese Yen.