- The EUR/JPY lowers about 163.00 while the Japanese yen serves strongly amid firm restrictive bets of the Boj.
- The maximum commercial representative of Japan will visit the USA later this week for commercial conversations with Washington.
- Center of the ECB foresees that interest rates fall below 2% to compensate for the downward risks of inflation.
EUR/JPY BAJA About 162.90 during the North American negotiation hours on Wednesday. The crossing goes as Japanese overcomes its peers, with investors increasingly confident that the Bank of Japan (BOJ) will increase interest rates this year again.
And in Japanese price today
The lower table shows the rate of change of Japanese Yen (JPY) compared to the main currencies today. The Japanese Yen was the strongest currency against the US dollar.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.44% | -0.30% | -0.50% | -0.34% | -0.34% | -0.34% | -0.38% | |
| EUR | 0.44% | 0.12% | -0.10% | 0.07% | 0.12% | 0.10% | 0.05% | |
| GBP | 0.30% | -0.12% | -0.21% | -0.04% | -0.00% | -0.03% | -0.10% | |
| JPY | 0.50% | 0.10% | 0.21% | 0.15% | 0.17% | 0.15% | 0.12% | |
| CAD | 0.34% | -0.07% | 0.04% | -0.15% | 0.00% | 0.02% | -0.06% | |
| Aud | 0.34% | -0.12% | 0.00% | -0.17% | 0.00% | -0.01% | -0.08% | |
| NZD | 0.34% | -0.10% | 0.03% | -0.15% | -0.02% | 0.00% | -0.06% | |
| CHF | 0.38% | -0.05% | 0.10% | -0.12% | 0.06% | 0.08% | 0.06% |
The heat map shows the percentage changes of the main currencies. The base currency is selected from the left column, while the contribution currency is selected in the upper row. For example, if you choose the Japanese yen from the left column and move along the horizontal line to the US dollar, the percentage change shown in the picture will represent the JPY (base)/USD (quotation).
Earlier this week, the vice governor of the BOJ, Shinichi Uchida, expressed confidence that inflation in Japan will probably accelerate after a slowdown period, a scenario that will keep the hopes of increases in interest rates alive.
Inflation in Japan is expected to cool for a period in the midst of uncertainty about global economic perspectives due to the repercussions of the tariffs of the president of the United States (USA), Donald Trump.
This week, the main trigger for the Japanese Yen (JPY) will be the commercial conversations between the US and Japan during the weekend. Japan Kyodo news agency reported Tuesday that the main commercial negotiator, Ryosei Akazawa, will visit Washington for commercial discussions later this week. The agency also reported on Tuesday that Japan will consider accepting lower tariff rates in the US and will not demand an exemption.
Although investors have backed the JPY in front of the euro (EUR), the main currency is surpassing their other peers before high the fire conversations to end the war in Ukraine. The president of the USA, Trump, declared through a publication in Truth. Social that both Russia and Ukraine have agreed Truce conversations in the city of the Vatican. The signals of a high fire between Russia and Ukraine would be favorable for the euro.
In the front of monetary policy, officials of the European Central Bank (ECB) continue to argue in favor of further reducing interest rates to compensate for the downward risks of inflation. “The ECB may need to cut its key interest rate below the neutral level of 1.5%-2%to prevent inflation from falling below its 2%target,” said the Governing Council member of the ECB and governor of the Bank of Portugal, Mario Centeno, at a conference during European negotiation hours.
Euro Faqs
The euro is the currency of the 19 countries of the European Union that belong to the Eurozone. It is the second most negotiated currency in the world, behind the US dollar. In 2022, it represented 31 % of all foreign exchange transactions, with an average daily business volume of more than 2.2 billion dollars a day. The EUR/USD is the most negotiated currency pair in the world, with an estimate of 30 %of all transactions, followed by the EUR/JPY (4 %), the EUR/GBP (3 %) and the EUR/AU (2 %).
The European Central Bank (ECB), based in Frankfurt (Germany), is the Eurozone reserve bank. The ECB establishes interest rates and manages monetary policy. The main mandate of the ECB is to maintain price stability, which means controlling inflation or stimulating growth. Its main tool is the rise or decrease in interest rates. Relatively high interest rates (or the expectation of higher types) usually benefit the euro and vice versa. The GOVERNMENT BOOK of the ECB makes decisions about monetary policy in meetings that are held eight times a year. The decisions are made by the directors of the National Banks of the Eurozone and six permanent members, including the president of the ECB, Christine Lagarde.
Eurozone inflation data, measured by the harmonized consumer prices index (IPCA), are an important economic indicator for the euro. If inflation increases more than expected, especially if it exceeds 2% of the ECB, it forces the ECB to rise interest rates to control it again. Relatively high interest rates compared to their counterparts usually benefit the euro, since they make the region more attractive as a place for global investors to deposit their money.
Published data measure the health of the economy and can have an impact on the euro. Indicators such as GDP, manufacturing and services PMIs, employment and consumer trust surveys can influence the direction of the single currency. A strong economy is good for the euro. Not only attracts more foreign investment, but it can encourage the ECB to raise interest rates, which will directly strengthen the euro. Otherwise, if economic data is weak, the euro is likely to fall. The economic data of the four largest economies in the euro zone (Germany, France, Italy and Spain) are especially significant, since they represent 75% of the economy of the euro area.
Another important fact that is published on the euro is the commercial balance. This indicator measures the difference between what a country earns with its exports and what you spend on imports during a given period. If a country produces highly demanded export products, its currency will gain value simply by the additional demand created by foreign buyers seeking to buy those goods. Therefore, a positive net trade balance strengthens a currency and vice versa in the case of a negative balance
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
