EUR/JPY surges to near 153.50 as Eurozone PMI returns back in black

Source Fxstreet
  • EUR/JPY soars to near 153.50 on stronger-than-projected Eurozone PMI growth in January.
  • The ECB is almost certain to cut interest rates on Thursday.
  • The BoJ refrained from committing a pre-defined rate hike path.

The EUR/JPY pair rises sharply to near 153.50 in Friday’s European session. The asset strengthens on the back of strong appeal for the Euro (EUR) as the flash Eurozone HCOB Purchasing Managers’ Index (PMI) data for January has come in surprisingly stronger.

The HCOB PMI data, compiled by S&P Global, showed that the overall business activity expanded after contracting for two months. The Composite PMI, which gauges the overall private sector activity, advances to 50.2 from 49.6 in December. Economists expected the overall business activity to continue to contract but at a slower pace. The report also showed that strong business activity in the Euro area majorly came from the German economy, which also returned into the expansion, while, the French economy continued to decline.

Surprisingly upbeat Eurozone PMI data has fears of weakening economic outlook, however, it is unlikely to diminish firm market expectations that the European Central Bank (ECB) will cut interest rates in the policy meeting on Thursday. The ECB is almost certain to cut its Deposit Facility rate by 25 basis points (bps) to 2.75%. Traders are price in three more interest rate cuts by the ECB in next three policy meetings.

Meanwhile, the Japanese Yen (JPY) weakens across the board as markets had already priced in a 25-basis points (bps) interest rate hike by the Bank of Japan (BoJ), which pushed borrowing rates higher to 0.5%. The BoJ has also revised inflation forecast higher, expects price pressures to remain above 2% until FY2026 amid confidence over firm wage outlook.

Japanese Yen PRICE Today

The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies today. Japanese Yen was the strongest against the US Dollar.

  USD EUR GBP JPY CAD AUD NZD CHF
USD   -0.68% -0.56% 0.00% -0.32% -0.53% -0.66% -0.17%
EUR 0.68%   0.12% 0.69% 0.36% 0.15% 0.03% 0.52%
GBP 0.56% -0.12%   0.56% 0.24% 0.02% -0.10% 0.39%
JPY 0.00% -0.69% -0.56%   -0.33% -0.55% -0.68% -0.19%
CAD 0.32% -0.36% -0.24% 0.33%   -0.22% -0.34% 0.15%
AUD 0.53% -0.15% -0.02% 0.55% 0.22%   -0.12% 0.32%
NZD 0.66% -0.03% 0.10% 0.68% 0.34% 0.12%   0.48%
CHF 0.17% -0.52% -0.39% 0.19% -0.15% -0.32% -0.48%  

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 Japanese Yen from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent JPY (base)/USD (quote).

The BoJ didn’t offer cues about when and at which pace the central bank will raise interest rates further. "We don't have any preset idea,” BoJ Governor Kazuo Ueda said. He added that the central bank make a decision at each policy meeting by looking at “economic and price developments as well as risks”.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Gold ends three-week slide at the $4,400 line — eight straight days of ETF inflows vs a 5% 10-year and a 100 dollarSpot gold closed Friday at $4,378.39, up 0.84% on the day and about 0.8% for the week — its first weekly gain in four weeks — with the intraday high of $4,399.67 leaving it 33 cents shy of the $4,400 line. Gold ETFs have now logged eight straight sessions of inflows, but with the 10-year back above 5% and the dollar index near 100, here is what decides whether this is a reversal or a bounce.
Author  Suzie
Sep 20, Sun
Spot gold closed Friday at $4,378.39, up 0.84% on the day and about 0.8% for the week — its first weekly gain in four weeks — with the intraday high of $4,399.67 leaving it 33 cents shy of the $4,400 line. Gold ETFs have now logged eight straight sessions of inflows, but with the 10-year back above 5% and the dollar index near 100, here is what decides whether this is a reversal or a bounce.
placeholder
October hike odds climb toward 60% as Goldman and BofA both flip — what Warsh's "dose of accommodation" really changedRate futures now price roughly 55% to 62% for a 25bp hike at the October 27-28 FOMC, up from about 30% before Chair Warsh's post-meeting framing that the Fed is merely "removing some accommodation." Goldman Sachs has added an October hike to its forecast and Bank of America now sees moves in both October and December. Here is the repricing, the language behind it, and the two data points that decide it.
Author  Irene Q.
Sep 23, Wed
Rate futures now price roughly 55% to 62% for a 25bp hike at the October 27-28 FOMC, up from about 30% before Chair Warsh's post-meeting framing that the Fed is merely "removing some accommodation." Goldman Sachs has added an October hike to its forecast and Bank of America now sees moves in both October and December. Here is the repricing, the language behind it, and the two data points that decide it.
placeholder
Four jobs reports in five days: what JOLTS, ADP, claims and the September payrolls mean for the October Fed decisionThe US labour market faces its densest data week of the month. JOLTS job openings land Tuesday (7.2 million expected), ADP on Wednesday (70,000 expected), initial claims on Thursday and the September non-farm payrolls on Friday (100,000 expected, down from 162,000). Markets price a 64%-70% chance of another quarter-point Fed hike on October 28. The dollar index sits at 100.77 and the S&P 500 at 7,729.8.
Author  Mitrade
Yesterday 06: 33
The US labour market faces its densest data week of the month. JOLTS job openings land Tuesday (7.2 million expected), ADP on Wednesday (70,000 expected), initial claims on Thursday and the September non-farm payrolls on Friday (100,000 expected, down from 162,000). Markets price a 64%-70% chance of another quarter-point Fed hike on October 28. The dollar index sits at 100.77 and the S&P 500 at 7,729.8.
placeholder
Nvidia's $150 billion buyback landed — and the AI sector fell anyway. That's the signal worth tradingNvidia closed up 1.68% at $228.86 on 28 September after announcing a $150 billion share repurchase authorisation, the largest single corporate buyback on record, while the rest of the AI complex sold off: AMD -3.6%, Micron -2.6%, Meta -4.8% and the Philadelphia Semiconductor Index -1.61%. The divergence is not noise. Capital is rotating toward cash-flow certainty, not abandoning the AI theme. With Micron reporting after the close on 30 September, here is what the split means.
Author  Irene Q.
8 hours ago
Nvidia closed up 1.68% at $228.86 on 28 September after announcing a $150 billion share repurchase authorisation, the largest single corporate buyback on record, while the rest of the AI complex sold off: AMD -3.6%, Micron -2.6%, Meta -4.8% and the Philadelphia Semiconductor Index -1.61%. The divergence is not noise. Capital is rotating toward cash-flow certainty, not abandoning the AI theme. With Micron reporting after the close on 30 September, here is what the split means.
placeholder
The 30-year Treasury just hit a 22-year high — and the bond market is not pricing the Fed, it is pricing the deficitThe 30-year Treasury yield closed at 5.56% on 28 September, the highest since June 2004, while the 10-year reached 5.24% and the 20-year 5.60%. The curve has steepened roughly 30bp in eight sessions even as October hike odds sit at 70.3%. That gap is the story: the long end is repricing fiscal and inflation risk, not policy. With PCE on Wednesday and payrolls on Friday, here is what the long end is really saying.
Author  Irene Q.
8 hours ago
The 30-year Treasury yield closed at 5.56% on 28 September, the highest since June 2004, while the 10-year reached 5.24% and the 20-year 5.60%. The curve has steepened roughly 30bp in eight sessions even as October hike odds sit at 70.3%. That gap is the story: the long end is repricing fiscal and inflation risk, not policy. With PCE on Wednesday and payrolls on Friday, here is what the long end is really saying.
Related Instrument
goTop
quote