- The EUR/JPY recovers initial losses and is located above 166.60 as the euro exceeds its peers.
- ECB officials have indicated that the monetary flexibility cycle has come to an end.
- The demand for sure shelter for the euro has increased, being a liquid alternative to the US dollar.
The EUR/JPY pair reviews the maximum of seven months about 166.60 during Thursday’s European negotiation hours after recovering the initial losses. The pair is strengthened as the euro (EUR) exceeds its peers after the signals of the officials of the European Central Bank (ECB) that the Central Bank could announce a pause in the current expansion cycle of monetary policy.
Euro price today
The lower table shows the percentage of euro change (EUR) compared to the main currencies today. Euro was the strongest currency against the US dollar.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.94% | -0.31% | -0.62% | -0.30% | -0.22% | -0.46% | -1.01% | |
| EUR | 0.94% | 0.64% | 0.33% | 0.65% | 0.70% | 0.48% | -0.05% | |
| GBP | 0.31% | -0.64% | -0.33% | 0.00% | 0.06% | -0.17% | -0.70% | |
| JPY | 0.62% | -0.33% | 0.33% | 0.32% | 0.39% | 0.11% | -0.38% | |
| CAD | 0.30% | -0.65% | -0.01% | -0.32% | 0.08% | -0.19% | -0.71% | |
| Aud | 0.22% | -0.70% | -0.06% | -0.39% | -0.08% | -0.23% | -0.76% | |
| NZD | 0.46% | -0.48% | 0.17% | -0.11% | 0.19% | 0.23% | -0.54% | |
| CHF | 1.01% | 0.05% | 0.70% | 0.38% | 0.71% | 0.76% | 0.54% |
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 euro of the left column and move along the horizontal line to the US dollar, the percentage change shown in the box will represent the EUR (base)/USD (quotation).
The member of the ECB Board, Isabel Schnabel, said in Brussels during European negotiation hours: “This monetary policy cycle is coming to an end, since medium -term inflation is stabilizing around the target,” Bloomberg said. Schnabel said he hopes that inflation is around 1.9% in both 2026 and 2027 and cited it as “right in the target.” He pointed out that growth prospects are stable despite the risk of commercial war.
Last week, the policy of the ECB and governor of the Bank of Estonia, Madis Muller, also pointed out that the monetary expansion cycle is in its final phase. Muller said he feels comfortable with the comments of the BCE president, Christine Lagarde, indicating that “the politics flexibility cycle is almost finished.” These comments from Lagarde occurred at their press conference last week after the ECB reduced interest rates at 25 basic points (PBS) at 2% for the seventh consecutive time.
Another reason behind the strength of the euro is an increase in its demand for safe refuge, being the liquid alternative to the US dollar (USD). The attractiveness of a safe US dollar shelter has decreased significantly in the midst of uncertainty about the US tariff policy (USA).
Although investors have backed the euro in front of the Japanese Yen (JPY), the latter exceeds their other peers amid the expectations that the Bank of Japan (BOJ) will increase the interest rates this year again.
This week, the governor of the Boj, Kazuo Ueda, kept the door open for greater hardening of monetary policy if officials are convinced that underlying inflation moves around 2%.
To obtain new clues about interest rates, investors expect the BOJ monetary policy announcement on Tuesday. At the meeting, the Central Bank is expected to maintain stable interest rates at 0.5%.
And in Japanese faqs
The Japanese Yen (JPY) is one of the most negotiated currencies in the world. Its value is determined in general by the march of the Japanese economy, but more specifically by the policy of the Bank of Japan, the differential between the yields of the Japanese and American bonds or the feeling of risk among the operators, among other factors.
One of the mandates of the Bank of Japan is the currency control, so its movements are key to the YEN. The BOJ has intervened directly in the currency markets sometimes, generally to lower the value of YEN, although it abstains often due to the political concerns of its main commercial partners. The current ultralaxy monetary policy of the BOJ, based on mass stimuli to the economy, has caused the depreciation of the Yen in front of its main monetary peers. This process has been more recently exacerbated due to a growing divergence of policies between the Bank of Japan and other main central banks, which have chosen to abruptly increase interest rates to fight against inflation levels of decades.
The position of the Bank of Japan to maintain an ultralaxa monetary policy has caused an increase in political divergence with other central banks, particularly with the US Federal Reserve. This favors the expansion of the differential between the American and Japanese bonds to 10 years, which favors the dollar against Yen.
The Japanese Yen is usually considered a safe shelter investment. This means that in times of tension in markets, investors are more likely to put their money in the Japanese currency due to their supposed reliability and stability. In turbulent times, the Yen is likely to be revalued in front of other currencies in which it is considered more risky to invest.
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.
