EUR/JPY depreciates to near 156.00 as BoJ holds hawkish stance

Quelle Fxstreet
  • EUR/JPY loses ground as the BoJ indicates further rate hikes if the economic outlook meets expectations.
  • Fitch Ratings report suggests that the BoJ may raise rates to 0.5% by the end of 2024.
  • ECB policymaker Joachim Nagel mentioned that core inflation is moving in the right direction.

EUR/JPY edges lower to near 156.20 during Friday’s Asian session, continuing to receive support from the Bank of Japan's (BoJ) hawkish signals. The BoJ has indicated that it may raise interest rates further if the economic outlook meets expectations.

Fitch Ratings' latest report on the Bank of Japan's policy outlook suggests that the BoJ might raise rates to 0.5% by the end of 2024, 0.75% in 2025, and 1.0% by the end of 2026. The BoJ is diverging from the global trend of policy easing, having raised rates more aggressively than anticipated in July. This move underscores its increasing confidence that reflation is now firmly established.

Read more: Fitch expects BoJ interest rate at 0.75% by 2025

On Thursday, hawkish BoJ policymaker Naoki Tamura stated that the central bank should raise interest rates to at least 1% as early as the second half of the next fiscal year. This comment reinforces the BoJ's commitment to ongoing monetary tightening. Tamura noted that the likelihood of Japan’s economy sustainably reaching the BoJ's 2% inflation target was improving, indicating that conditions for further rate hikes are becoming more favorable, according to Reuters.

The European Central Bank (ECB) reduced the Main Refinancing Operations Rate to 4.0% with a 25 basis-point cut on Thursday. Additionally, in an interview with Deutschlandfunk early Friday, ECB policymaker and Bundesbank President Joachim Nagel mentioned that "core inflation is also moving in the right direction." Nagel expects the inflation goal to be achieved at the end of next year.

Traders await the Eurozone's Industrial Production data scheduled for later today. The monthly figure is anticipated to decrease by 0.3% in July, following a previous 0.1% decline. Meanwhile, the annual data is expected to show a 2.7% decline, an improvement from the previous 3.9% drop.

Interest rates FAQs

Interest rates are charged by financial institutions on loans to borrowers and are paid as interest to savers and depositors. They are influenced by base lending rates, which are set by central banks in response to changes in the economy. Central banks normally have a mandate to ensure price stability, which in most cases means targeting a core inflation rate of around 2%. If inflation falls below target the central bank may cut base lending rates, with a view to stimulating lending and boosting the economy. If inflation rises substantially above 2% it normally results in the central bank raising base lending rates in an attempt to lower inflation.

Higher interest rates generally help strengthen a country’s currency as they make it a more attractive place for global investors to park their money.

Higher interest rates overall weigh on the price of Gold because they increase the opportunity cost of holding Gold instead of investing in an interest-bearing asset or placing cash in the bank. If interest rates are high that usually pushes up the price of the US Dollar (USD), and since Gold is priced in Dollars, this has the effect of lowering the price of Gold.

The Fed funds rate is the overnight rate at which US banks lend to each other. It is the oft-quoted headline rate set by the Federal Reserve at its FOMC meetings. It is set as a range, for example 4.75%-5.00%, though the upper limit (in that case 5.00%) is the quoted figure. Market expectations for future Fed funds rate are tracked by the CME FedWatch tool, which shapes how many financial markets behave in anticipation of future Federal Reserve monetary policy decisions.

Haftungsausschluss: Nur zu Informationszwecken. Die bisherige Performance ist kein verlässlicher Indikator für zukünftige Ergebnisse.
placeholder
Goldman Sachs: Nahost-Konflikt könnte die Ölpreise weiter steigen lassenDer Konflikt zwischen Iran und Israel könnte die Ölpreise im kommenden Jahr erheblich beeinflussen, laut Goldman Sachs sogar um bis zu 20 US-Dollar pro Barrel steigen lassen.
Autor  Mitrade Team
Gestern 09: 03
Der Konflikt zwischen Iran und Israel könnte die Ölpreise im kommenden Jahr erheblich beeinflussen, laut Goldman Sachs sogar um bis zu 20 US-Dollar pro Barrel steigen lassen.
placeholder
Euro nach Stabilisierung im US-Handel nahezu unverändertDer Euro zeigte sich am Freitag im US-Handel stabil, nachdem er zuvor auf den niedrigsten Stand seit August gefallen war.
Autor  Mitrade Team
Gestern 08: 52
Der Euro zeigte sich am Freitag im US-Handel stabil, nachdem er zuvor auf den niedrigsten Stand seit August gefallen war.
placeholder
Jeder Dritte sorgt sich um die eigenen FinanzenEine aktuelle Umfrage zeigt, dass weniger Deutsche sich Sorgen um ihre Finanzen machen als noch vor einem Jahr, wobei jüngere Altersgruppen besonders betroffen sind.
Autor  Mitrade Team
Gestern 08: 41
Eine aktuelle Umfrage zeigt, dass weniger Deutsche sich Sorgen um ihre Finanzen machen als noch vor einem Jahr, wobei jüngere Altersgruppen besonders betroffen sind.
placeholder
Bayer macht Fortschritte beim Umbau - Konzernchef Anderson sieht sich dem Zeitplan vorausBayer hat den Umbau des Unternehmens vorangetrieben und ist bereits bei 70 Prozent der Teams auf das neue Modell umgestiegen.
Autor  Mitrade Team
Gestern 08: 32
Bayer hat den Umbau des Unternehmens vorangetrieben und ist bereits bei 70 Prozent der Teams auf das neue Modell umgestiegen.
placeholder
Boeing reduziert jeden zehnten ArbeitsplatzBoeing plant den Abbau von rund zehn Prozent seiner Arbeitsplätze, um die Belegschaft an die finanziellen Realitäten anzupassen.
Autor  Mitrade Team
Gestern 08: 05
Boeing plant den Abbau von rund zehn Prozent seiner Arbeitsplätze, um die Belegschaft an die finanziellen Realitäten anzupassen.
verbundene Finanzinstrumente
goTop
quote