EUR/JPY rises as Euro holds firm, Yen weakens on dovish BoJ outlook
The post EUR/JPY rises as Euro holds firm, Yen weakens on dovish BoJ outlook appeared com. EUR/JPY trades around 178. 30 on Tuesday at the time of writing, up 0. 10% for the day, as markets digest the latest economic indicators from Germany and the ongoing uncertainty surrounding Japan’s monetary policy. In Germany, the ZEW Economic Sentiment Index fell to 38. 5 in November from 39. 3 in October, disappointing expectations for an improvement to 40. 0. The Current Situation Index improved slightly to -78. 7 but missed forecasts of -77. 5, confirming investors’ cautious stance amid weak domestic demand and subdued growth prospects. Across the Eurozone, however, sentiment improved more than expected, providing modest support to the Euro (EUR). In this context, comments from Martin Kocher, European Central Bank (ECB) Governing Council member and Governor of the Austrian National Bank, lent slight support to the single currency. He reiterated that the ECB’s monetary policy remains well-positioned and that no further adjustments are needed in the near term. In Japan, the Japanese Yen (JPY) remains under pressure following remarks from Takuji Aida, economic adviser to Prime Minister Sanae Takaichi, who warned that it would be “risky” for the Bank of Japan (BoJ) to raise interest rates as soon as December, suggesting instead a possible hike in January if growth prospects for fiscal 2026 strengthen. These comments reinforced expectations of a prolonged period of accommodative monetary policy. Markets also remain focused on Japan’s Producer Price Index (PPI) data, due on Friday, which could provide further clues on the BoJ’s next policy steps. In the meantime, mounting risk appetite and easing pressure on the BoJ to tighten policy continue to limit demand for the Japanese Yen, allowing EUR/JPY to hold firmly above the 178. 00 level. Euro Price Today The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the strongest against the British Pound. USD EUR GBP JPY. Continue reading EUR/JPY rises as Euro holds firm, Yen weakens on dovish BoJ outlook
