- EUR/JPY will lose ground as the Japanese yen moves forward, as the BOJ rate hikes grow even more.
- Japanese pastor Kinosaki said the authorities will take appropriate measures regarding US mutual tariffs.
- As expected, Eurozone GDP could remain consistent in the previous year of 0.9% growth in the fourth quarter.
EUR/JPY continues to lose ground in its second consecutive sessions, trading around 159.60 during Asian time on Friday. After the release of stronger producer price index (PPI) data from Japan, stronger producer price index (PPI) data from Japan has been released, with more data from the Bank of Japan (BOJ) After strengthening expectations for an interest rate hike, the currency intersection will be depreciated.
Japan's producer price index rose 4.2% year-on-year in January 2025, up from the 3.9% revision in December, with market forecasts exceeding 4.0%. This marks the 47th consecutive month of producer inflation and highest levels since May 2023. The data highlights the growing Japanese inflationary pressures strengthened by recent wage growth, and strengthens cases due to the Bank of Japan's interest rate hike.
Furthermore, Hawkish's stance on monetary policy of the Bank of Japan (BOJ) continued to support JPY. There is uncertainty about whether BOJ will raise interest rates again in March, but there is widespread expectation that the central bank will implement further rate hikes later this year.
On Friday, Japanese Economic Minister Benisaki said the authorities would respond appropriately to US mutual tariffs. Akazawa also said that Japan's weak yen (JPY) will have a variety of effects on Japan's seedling economy.
The euro faces potential headwinds as it showed the market was priced on Thursday with three interest rate cuts, according to Reuters It may be. Vujčić also suggested that the ECB could remove references to “restrictive policies” in its March statement, citing expectations for a rapid decline in service inflation in the coming months.
