- EUR/JPY falls sharply to near 171.00 dur to continuous underperformance from the Euro.
- Investors await the flash Eurozone inflation data for July.
- The BoJ is expected to leave interest rates steady on Thursday.
The EUR/JPY pair slumps to near 171.00 during the Asian trading session on Wednesday. The pair falls sharply as the Euro (EUR) continues to underperform its peers, following the announcement of a trade agreement between the United States (US) and the European Union (EU) on Sunday.
Euro PRICE This week
The table below shows the percentage change of Euro (EUR) against listed major currencies this week. Euro was the weakest against the US Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 1.77% | 0.60% | 0.21% | 0.43% | 1.01% | 0.92% | 1.04% | |
| EUR | -1.77% | -1.18% | -1.51% | -1.33% | -0.75% | -0.85% | -0.73% | |
| GBP | -0.60% | 1.18% | -0.51% | -0.15% | 0.44% | 0.34% | 0.44% | |
| JPY | -0.21% | 1.51% | 0.51% | 0.23% | 0.76% | 0.69% | 0.98% | |
| CAD | -0.43% | 1.33% | 0.15% | -0.23% | 0.55% | 0.49% | 0.60% | |
| AUD | -1.01% | 0.75% | -0.44% | -0.76% | -0.55% | -0.10% | -0.01% | |
| NZD | -0.92% | 0.85% | -0.34% | -0.69% | -0.49% | 0.10% | 0.10% | |
| CHF | -1.04% | 0.73% | -0.44% | -0.98% | -0.60% | 0.00% | -0.10% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent EUR (base)/USD (quote).
Officials from the US and the EU agreed to a 15% baseline tariff rate on Brussels, which is similar to what Washington has imposed on Japan. The 15% baseline tariff rate is half of what US President Donald Trump threatened in the mid of the month.
“While the U.S. dollar’s strength may reflect the perception that the new US-EU deal is lopsided in favour of the US, analysts at Macquarie group said, Reuters reported.
In Eurozone, investors await the preliminary Harmonized Index of Consumer Prices (HICP) data for July from the shared continent and its major economies. Price pressures are expected to have grown at a moderate pace.
In Japan, investors await the announcement of the Bank of Japan’s (BoJ) monetary policy on Thursday. The BoJ is expected to leave interest rates steady at 0.5%. Investors will pay close attention to BoJ’s guidance on the interest rate outlook in the remainder of the year.
The tariff deal between the US and Japan is expected to be a big relief for BoJ officials, which has diminished uncertainty surrounding the economic outlook.
