The yen remains the worst performing currency among the G8 major currencies this week. EUR/JPY’s downside attempts above the previous high at 182.00 were contained earlier on Wednesday, and the pair reversed earlier losses to retest its highs in over 30 years at 182.60.
The Japanese yen remained under pressure on Wednesday, crushed by a bleak economic outlook, following Monday’s sharp drop in GDP, and rising fiscal concerns following the US$137 million spending package approved by Prime Minister Sanae Takaishi’s government in November.
The Bank of Japan is expected to raise interest rates by 25 basis points to 0.75% next week, but the path forward is cloudy. Bank of Japan Governor Ueda stressed last week that he is not sure how high interest rates will go in 2026, and that 0.75% is still low, especially if most major central banks start hinting at raising interest rates.
In the Eurozone, macroeconomic data was relatively positive this week. German industrial production rose beyond expectations, and its trade balance expanded as exports unexpectedly grew. Apart from that, the Sentix Eurozone Investor Confidence Index rose, although it remains at negative levels.
The European Central Bank meets next week and is widely expected to leave its monetary policy unchanged. Earlier in the week, ECB Governing Council member Isabel Schnabel confirmed that the next step would likely be a rate hike, providing additional support for the euro.
The price of the Japanese yen this week
The table below shows the percentage change of the Japanese Yen (JPY) against the major currencies listed this week. The Japanese yen was the strongest against the Canadian dollar.
| US dollars | euro | GBP | JPY | Canadian | Australian dollar | New Zealand dollar | Swiss franc | |
|---|---|---|---|---|---|---|---|---|
| US dollars | 0.05% | 0.15% | 1.00% | 0.18% | -0.12% | -0.17% | 0.08% | |
| euro | -0.05% | 0.13% | 0.99% | 0.18% | -0.12% | -0.17% | 0.08% | |
| GBP | -0.15% | -0.13% | 0.88% | 0.04% | -0.25% | -0.31% | -0.06% | |
| JPY | -1.00% | -0.99% | -0.88% | -0.81% | -1.10% | -1.15% | -0.89% | |
| Canadian | -0.18% | -0.18% | -0.04% | 0.81% | -0.29% | -0.35% | -0.09% | |
| Australian dollar | 0.12% | 0.12% | 0.25% | 1.10% | 0.29% | -0.06% | 0.20% | |
| New Zealand dollar | 0.17% | 0.17% | 0.31% | 1.15% | 0.35% | 0.06% | 0.26% | |
| Swiss franc | -0.08% | -0.08% | 0.06% | 0.89% | 0.09% | -0.20% | -0.26% |
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).
