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Euro climbs versus yen as rate-hike bets rise for ECB and BoJ
EUR/JPY was up 0.1% on the day near 184.15, with Eurozone GDP growth and upside inflation risks supporting further ECB tightening while Japan policy expectations limit gains.
The euro strengthened against the Japanese yen on Friday as market expectations for monetary tightening in both the Eurozone and Japan intensified, according to FXStreet.
EUR/JPY rose 0.15% and was trading around 184.15, remaining supported by bets that the European Central Bank will raise rates at its September meeting, its second increase this year, as Eurozone inflation risks stay tilted to the upside.
On the fundamentals, Eurostat’s second estimate showed Eurozone GDP expanded 0.4% quarter over quarter in the second quarter, in line with the preliminary estimate, and grew 1.0% year over year after no growth in the prior quarter.
Japan’s outlook also factored into the pair, with expectations growing that the Bank of Japan could raise interest rates as soon as its September meeting, while FX market intervention remains in focus after Japan’s Ministry of Finance said the United States and Japan intervened in late July to counter “excessive volatility and disorderly movements” in the yen.