- EUR/JPY trades higher as BoJ maintained its current interest rates at -0.1%.
- Japan's Finance Minister Shunichi Suzuki stressed that they are not ruling out any options to address excessive foreign exchange volatility.
- ECB Chief Economist Phillip Lane emphasized tightening monetary policy through adjustments to interest rates.
EUR/JPY attempts to recover from the previous day’s losses after the interest rate decision by the Bank of Japan (BoJ). As widely expected, BoJ maintained its current interest rates at -0.1%. The spot price is trading higher around 157.60 during the Asian session on Friday.
As the Japanese Yen (JPY) faced renewed selling pressure earlier in the day, Japan's Finance Minister Shunichi Suzuki responded with typical verbal intervention. Suzuki stated that he has no comment on recent foreign exchange (FX) levels and movements.
Suzuki also noted that the FX intervention conducted last year had its intended impact, and the central bank is closely monitoring FX movements with a high degree of urgency.
Furthermore, the policymaker emphasized that they are not ruling out any options for responding to excessive FX volatility and are in close communication with foreign currency authorities overseas.
Japan’s National Consumer Price Index (YoY) for August grew to 3.2% slightly lower than the previous rate of 3.3%. While National CPI ex-Fresh Food (YoY) remained consistent at 3.1% against the expected 3.0%.
On the European Central Bank (ECB) front, Chief Economist Phillip Lane stated early on Friday that "inflation over 2% is costly for the economy." Lane emphasized that central banks aim to achieve inflation targets in the medium term and refrained from speculating on future ECB policy decisions. The policymaker also pointed out that the most effective way to tighten monetary policy is through adjustments to interest rates.
Investors will also likely observe preliminary HCOB PMIs from the Eurozone for September, seeking more valuable insights into the bloc’s economic activities.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD suffers worst decline in months, stays below 1.0900
EUR/USD lost almost a hundred pips on Thursday, having the worst day in months. The Euro lost ground across the board while the US Dollar had a mixed performance after US data pointed to softer inflation and a more balanced labor market.
GBP/USD consolidates losses around 1.2600
GBP/USD pulled back sharply on Thursday amid a stronger US Dollar supported by higher Treasury yields. The pair found support above 1.2600 and is consolidating around 1.2620.
Gold eases as investors rush away from safety
Financial markets turned optimistic after US inflation eased further in November. Speculative interest increases bets of a shift in central banks' monetary policy. XAU/USD is in a bearish corrective decline in the near term, slide should remain limited.
Kyber exploiter asks for complete control of all assets after nearly $50 million exploit
Kyber Network, a cross-chain decentralized exchange and aggregator, was hit by an exploit that drained nearly $50 million in cryptocurrencies from its liquidity pools. The exploiter contacted the team, asking them to await a statement concerning a “potential treaty.”
Salesforce rally helps Dow Jones outpace NASDAQ, S&P 500 on Thursday
Salesforce (CRM) is the main story on Thursday. The enterprise software company utilized artificial-intelligence-based (AI) integrations in its product suite to grow profits and revenue for the third quarter.