Ella 
EUR/JPY jumped to a fresh cycle high at 159.30.
The euro strengthened against most of its rivals following the release of the Bundesbank’s monthly report.
A surprise rate cut by the People’s Bank of China and a dovish Bank of Japan weakened the yen.
In that sense, the European currency strengthened against its rivals after the German Bundesbank’s monthly report suggested that inflationary pressures may last longer than the European Central Bank (ECB) expected. As a result, investors are betting on a more aggressive ECB as German yields rise, keeping the euro in focus. The focus will now turn to Christine Lagarde’s speech at the Jackson Hole Symposium on Thursday, where investors will look for clues on forward guidance.
In terms of the yen, the People’s Bank of China unexpectedly cut the one-year prime lending rate (LPR), reminding investors of the fragile economic situation in China, the giant Asian economy, which may further weaken the Japanese economy. In addition, news that the Bank of Japan (BoJ) will consider tightening policy amid rising wage pressures, the Bank of Japan’s ultra-dovish stance also contributed to the decline in the yen.
