EUR/JPY is recovering from Friday’s early lows as the Japanese yen struggles to benefit from rising expectations of a Bank of Japan rate hike. At the time of writing, the pair is hovering near 180.77, rebounding after falling to an intraday low of 180.10, although price action remains largely confined within the familiar range established since mid-November.
The euro is also finding support from the latest Eurozone growth figures released by Eurostat. Third-quarter GDP rose 0.3% quarter-on-quarter, compared to expectations of 0.2% and a reading of 0.2% for the second quarter. On an annual basis, GDP increased by 1.4% year-on-year, in line with expectations.
Accompanying details indicated a broad improvement with household consumption rising by 0.2%, government spending rising by 0.7%, and investment increasing by 0.9%, while exports rose by 0.7% and imports advanced by 1.3%.
Employment figures were also encouraging, with employment in the euro area rising by 0.2% quarter-on-quarter, higher than the 0.1% expected and 0.1% recorded in the second quarter. On an annual basis, the employment rate increased by 0.6%, which is in line with expectations.
On the Japanese side, the yen is facing difficulties in benefiting from strong expectations that the Bank of Japan may raise interest rates at its meeting on December 18-19. Tough comments by Bank of Japan Governor Kazuo Ueda earlier this week revived speculation about an imminent policy adjustment.
Bloomberg reported earlier in the day that Bank of Japan officials are prepared to raise interest rates at a meeting this month, according to people familiar with the matter, provided there is no major shock to the economy or financial markets. The report added that policymakers also plan to signal that they are willing to continue raising interest rates if the economic outlook develops as expected, while remaining cautious about how far interest rates may ultimately rise.
Looking ahead, attention turns to a new round of Japanese data due on Monday, including employment earnings, the current account, and the final estimate for third-quarter GDP. These releases will help shape expectations for the Bank of Japan’s policy path heading into the December meeting.
Japanese yen price today
The table below shows how much the Japanese Yen (JPY) has changed against the major currencies listed today. The Japanese yen was the strongest against the Swiss franc.
| US dollars | euro | GBP | JPY | Canadian | Australian dollar | New Zealand dollar | Swiss franc | |
|---|---|---|---|---|---|---|---|---|
| US dollars | -0.01% | -0.11% | 0.09% | -0.15% | -0.39% | -0.21% | 0.02% | |
| euro | 0.01% | -0.10% | 0.11% | -0.14% | -0.38% | -0.20% | 0.04% | |
| GBP | 0.11% | 0.10% | 0.17% | -0.04% | -0.28% | -0.11% | 0.13% | |
| JPY | -0.09% | -0.11% | -0.17% | -0.22% | -0.47% | -0.30% | -0.05% | |
| Canadian | 0.15% | 0.14% | 0.04% | 0.22% | -0.25% | -0.08% | 0.18% | |
| Australian dollar | 0.39% | 0.38% | 0.28% | 0.47% | 0.25% | 0.17% | 0.46% | |
| New Zealand dollar | 0.21% | 0.20% | 0.11% | 0.30% | 0.08% | -0.17% | 0.24% | |
| Swiss franc | -0.02% | -0.04% | -0.13% | 0.05% | -0.18% | -0.46% | -0.24% |
The heat map shows the percentage changes in major currencies versus each other. The base currency is chosen from the left column, while the counter currency is chosen from the top row. For example, if you select the Japanese Yen from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent the Japanese Yen (base)/US Dollar (quote).
