Euro climbs for third straight day against yen on central banks prospects

Economies.com
2023-04-10 12:01PM UTC

Euro rose in European trade against yen for the third straight session amid the divergent outlook for central banks in Japan and Europe, with the ECB expected to increase interest rates successively in upcoming months. 

 

Conversely, Bank of Japan new governor Kazuro Ueda asserted his commitment to the ultra easy monetary policy of his predecessor and ruled out extensive rate hikes.

 

EUR/JPY rose 0.5% to 144.70, with a session-low at 143.80, after rising 0.1% on Friday, the second profit in a row, resuming gains after a short hiatus away from three-month highs at 145.67. 

 

ECB

 

Recent strong European data showed the economy is doing better than expected in the first quarter, paving the way for further policy tightening by the European Central Bank.

 

Advertistment

ECB President Christine Lagarde said the bank still has a lot to do, and will depend on data to decide its upcoming policy decisions, noting that inflation remains high in the euro zone.

 

Kazuo Ueda

 

New Bank of Japan Governor Kazuo Ueda officially took the position on Monday and asserted the bank's commitment to easy monetary policies. 

 

Ueda said the ongoing challenge is how to extend monetary easing while pledging to further extend the previous policies, and noted that Bank of Japan's current monetary incentives helped boost Japan out of recession.

 

Ueda said extensive rate hikes aren't viable in Japan in current  conditions and that the financial markets have started to regain their calm.

Forex and Currency News

Forex News

Forex

Dollar moves in positive zone despite prospects of early rate cuts
2023-12-04 11:59AM UTC
Dollar rose in European trade on Monday against a basket of major rivals, on track for the third ...
EUR/GBP news

Forex

Sterling gives up three-month high against euro on profit-taking
2023-12-04 11:31AM UTC
Sterling fell in European trade on Monday against euro away from three-month highs and on track for ...
EUR/USD news

Forex

Euro hovers near two-week trough ahead of Lagarde's remarks
2023-12-04 08:17AM UTC
Euro fell in European trade on Monday against a basket of major rivals, extending losses for the ...

Forex Technical Analysis

EUR USD Analysis

Forex

Evening update analysis for the EURUSD 04-12-2023
2023-12-04 15:02PM UTC
The EURUSD pair faces negative pressure to break 1.0860 level and settles below it now, to hint ...
NZD USD Analysis

Forex

Midday update for the NZDUSD 04-12-2023
2023-12-04 10:12AM UTC
The NZDUSD pair fluctuates with slight negativity and attempts to return to fluctuate around ...
AUD USD Analysis

Forex

Midday update for the AUDUSD 04-12-2023
2023-12-04 10:12AM UTC
The AUDUSD pair faces clear negative pressure to break 0.6660 level and attempt to hold below it, ...