Italy's energy minister said he does not believe tensions with the United States will jeopardize Italy's liquefied natural gas (LNG) supplies.

ING analyst Bert Colijn said June euro-area PMI still shows overall business activity in contraction, but easing energy prices have reduced price pressures. Input-cost growth in both manufacturing and services slowed and firms’ own price increases were smaller than in May. Weak growth combined with subsiding inf will curb the ECB’s appetite for large rate hikes, as the current inf backdrop is insufficient to justify significant policy tightening.

USD/JPY tumbled more than 30 pips intraday and has recovered to 161.48.