- EUR/JPY rallies to near 164.50 even though a few ECB officials see key borrowing rates declining below the neutral rate.
- ECB officials worry about growing Eurozone economic risks.
- Investors will focus on BoJ Ueda’s speech for fresh interest rate guidance.
The EUR/JPY pair posts a fresh 14-week high near 164.50 in Wednesday’s European session. The cross soars even though a few European Central Bank (ECB) officials see the Deposit Facility Rate falling below neutral levels, which is currently at 3.25% after three interest rate cuts this year.
ECB officials see more interest rate cuts as appropriate as they worry that inflationary pressures in the Eurozone could remain below 2% due to poor economic growth. Eurozone’s largest nation, Germany, is expected to end the current year with a decline in the output by 0.2%, predicted by the German economic ministry. This would be the second straight year of contraction in a row.
According to economists, the ECB neutral rate is around 2% or 2.25%, Reuters reported. ECB funds rate heading below the neutral rate suggests the central bank to continue easing in 2025. Meanwhile, traders have already priced in one more interest rate cut in the December meeting. This has weakened the Euro (EUR) against its major peers.
Euro PRICE Today
The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the strongest against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.16% | 0.05% | 1.10% | 0.06% | 0.39% | 0.31% | 0.18% | |
| EUR | -0.16% | -0.10% | 0.96% | -0.08% | 0.25% | 0.16% | 0.03% | |
| GBP | -0.05% | 0.10% | 1.07% | -0.00% | 0.35% | 0.26% | 0.18% | |
| JPY | -1.10% | -0.96% | -1.07% | -1.03% | -0.71% | -0.78% | -0.87% | |
| CAD | -0.06% | 0.08% | 0.00% | 1.03% | 0.33% | 0.27% | 0.17% | |
| AUD | -0.39% | -0.25% | -0.35% | 0.71% | -0.33% | -0.06% | -0.16% | |
| NZD | -0.31% | -0.16% | -0.26% | 0.78% | -0.27% | 0.06% | -0.10% | |
| CHF | -0.18% | -0.03% | -0.18% | 0.87% | -0.17% | 0.16% | 0.10% |
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 Euro from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent EUR (base)/USD (quote).
However, market participants have underpinned the Euro against the Japanese Yen (JPY) amid growing uncertainty over whether the Bank of Japan (BoJ) will hike interest rates further this year. In the last policy meeting, BoJ members didn’t offer any cues about potential rate hikes in the remainder of the year. The next BoJ policy meeting is scheduled for October 31 in which market participants expect the central bank to leave interest rates unchanged, with US election risks looming large.
In today’s session, investors will pay close attention to BoJ Governor Kazuo Ueda’s speech at the International Monetary Fund (IMF)-hosted “Governors Talk” for fresh guidance on interest rates.
Economic Indicator
BoJ Governor Ueda speech
Kazuo Ueda is the Governor of the Bank of Japan, he replaced Haruhiko Kuroda on April 2023. Before being appointed, Ueda was an economics professor at the University of Tokyo and held a PhD from the Massachusetts Institute of Technology. Mr. Ueda is the first academic economist to run the bank in post-war Japan, breaking with the tradition that the governor is drawn from the BoJ or finance ministry.
Read more.Next release: Wed Oct 23, 2024 19:00
Frequency: Irregular
Consensus: -
Previous: -
Source: Bank of Japan
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 accelerates losses to 1.0930 on stronger Dollar
The US Dollar's recovery regains extra impulse sending the US Dollar Index to fresh highs and relegating EUR/USD to navigate the area of daily troughs around 1.0930 in the latter part of Friday's session.
GBP/USD plummets to four-week lows near 1.2850
The US Dollar's rebound keep gathering steam and now sends GBP/USD to the area of multi-week lows in the 1.2850 region amid the broad-based pullback in the risk-associated universe.
Gold trades on the back foot, flirts with $3,000
Gold prices are accelerating their daily decline, steadily approaching the critical $3,000 per troy ounce mark as the Greenback's rebound gains extra momentum and US yields tighten their retracement.
Can Maker break $1,450 hurdle as whales launch buying spree?
Maker holds steadily above $1,250 support as a whale scoops $1.21 million worth of MKR. Addresses with a 100k to 1 million MKR balance now account for 24.27% of Maker’s total supply. Maker battles a bear flag pattern as bulls gather for an epic weekend move.
Strategic implications of “Liberation Day”
Liberation Day in the United States came with extremely protectionist and inward-looking tariff policy aimed at just about all U.S. trading partners. In this report, we outline some of the more strategic implications of Liberation Day and developments we will be paying close attention to going forward.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.