Euro falls below 179.00 as Japanese Yen strengthens ahead of BoJ
- EUR/JPY loses ground on Thursday after three consecutive days of gains.
- Markets expect the Bank of Japan to raise interest rates by 25 basis points on Friday.
- Annual inflation in the Eurozone eases slightly to 3.2%, while core inflation meets expectations.
EUR/JPY falls 0.25% on Thursday, trading around 178.70 at the time of writing and snapping a three-day winning streak. The strengthening Japanese Yen (JPY) weighs on the cross as investors anticipate another interest rate hike from the Bank of Japan (BoJ) on Friday.
Expectations of monetary tightening in Japan remain in focus. Markets expect the BoJ to raise its policy rate by 25 basis points at Friday's meeting, a prospect that supports the Japanese Yen against the Euro (EUR).
Japanese officials, however, maintain a cautious tone ahead of the monetary policy decision. Japan's Economy Minister Minoru Kiuchi said on Thursday that the government aims to balance economic strength with fiscal sustainability while declining to comment directly on the interest rate outlook.
Meanwhile, Japan's Finance Minister Satsuki Katayama said authorities will review budget requests and manage debt issuance to maintain market confidence. Katayama added that she expects the central bank to conduct monetary policy appropriately to achieve its 2% inflation target in a stable manner.
On the European side, the latest inflation data provide little support to the Euro. The Harmonized Index of Consumer Prices (HICP) rose 0.4% MoM, matching expectations and the previous increase. On an annual basis, inflation eased slightly to 3.2%, below the 3.3% expected.
Core HICP increased 0.2% MoM, unchanged from the previous reading, while the annual rate came in at 2.4%, in line with expectations. The figures point to relatively stable underlying price pressures, leaving the monetary policy divergence between Europe and Japan at the center of the near-term outlook for EUR/JPY.
Euro Price Today
The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the strongest against the Canadian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.09% | -0.11% | -0.39% | 0.05% | -0.32% | -0.39% | -0.01% | |
| EUR | 0.09% | -0.02% | -0.30% | 0.14% | -0.25% | -0.27% | 0.09% | |
| GBP | 0.11% | 0.02% | -0.25% | 0.17% | -0.22% | -0.25% | 0.14% | |
| JPY | 0.39% | 0.30% | 0.25% | 0.40% | 0.08% | -0.02% | 0.37% | |
| CAD | -0.05% | -0.14% | -0.17% | -0.40% | -0.35% | -0.41% | -0.01% | |
| AUD | 0.32% | 0.25% | 0.22% | -0.08% | 0.35% | -0.03% | 0.31% | |
| NZD | 0.39% | 0.27% | 0.25% | 0.02% | 0.41% | 0.03% | 0.42% | |
| CHF | 0.00% | -0.09% | -0.14% | -0.37% | 0.01% | -0.31% | -0.42% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent EUR (base)/USD (quote).
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