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• EUR/JPY edges lower to near 163.00 as the Japanese Yen performs strongly on firm BoJ hawkish bets.
• Japan’s Akazawa to visit the US later this week for trade talks with Washington.
• ECB’s Centeno sees interest rates falling below 2% to offset downside risks to inflation.

The EUR/JPY pair edges down to near 162.90 during North American trading hours on Wednesday. The cross ticks lower as the Japanese Yen (JPY) outperforms across the board, with investors remaining increasingly confident that the Bank of Japan (BoJ) will raise interest rates again this year.

Japanese Yen PRICE Today
 

The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies today. Japanese Yen was the strongest against the US Dollar.

Earlier this week, BoJ Deputy Governor Shinichi Uchida expressed confidence that inflation in Japan will likely re-accelerate after a period of slowdown, a scenario that will keep hopes of interest rate hikes alive.

Inflation in Japan is expected to cool down for a period amid uncertainty over the global economic outlook due to the fallout of tariffs by United States (US) President Donald Trump.

This week, the major trigger for the Japanese Yen (JPY) will be US-Japan trade talks on the weekend. Japan’s Kyodo News agency reported on Tuesday that top trade negotiator Ryosei Akazawa will visit Washington for trade discussions later this week. The agency also reported on Tuesday that Japan to consider accepting lower US tariff rates, and not demanding exemption.

Though investors have underpinned the JPY against the Euro (EUR), the major currency is outperforming its other peers ahead of ceasefire talks to end war in Ukraine. US President Trump stated through a post on Truth.Social that both Russia and Ukraine have agreed for truce talks in the Vatican City. Signs of a ceasefire between Russia and Ukraine would be favorable for the Euro.

On the monetary policy front, European Central Bank (ECB) officials continue to argue in favor of lowering interest rates further to offset downside inflation risks. "The ECB may need to cut its key interest rate below the neutral level of 1.5%-2% to prevent inflation from falling below its 2% target," ECB Governing Council member and Governor of the Bank of Portugal Mario Centeno said in a briefing during European trading hours.

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