#EURJPY @ 141.190 should come lower amid too optimistic economic expectations – ING

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Economists at ING expect the EUR/JPY pair to edge lower as goldilocks year for the US economy could be too good to be true.

“Listening to Fed Chair Powell’s press conference on 1 February it almost sounded like 2023 could be a Goldilocks year for the US economy. Inflation could come down even though unemployment remained low. If that is too good to be true, then EUR/JPY should come lower.”

“There is also the case that the ECB’s new-found hawkishness in December – and marketed with mixed success in February – falls by the wayside. That is not our house view, which sees the ECB hiking a further 75 bps (deposit rate at 3.25%) and rates then unchanged through the fourth quarter of 2024.”

“The Japanese Yen also has the advantage of stronger Asian regional growth.”

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