Euro Gains Against Yen as ECB, BoJ Rate Hike Bets Intensify

The EUR/JPY exchange rate has advanced to around 184.15 on Friday, as investors assess the monetary policy outlook in Europe and Japan.

Markets widely expect the European Central Bank (ECB) and the Bank of Japan (BoJ) to raise interest rates in September, which is supporting the Euro (EUR).

The Eurozone growth figures for the second quarter were confirmed at 0.4%, following stagnation in the previous quarter.

Despite growing expectations that Japan could raise interest rates as soon as September, analysts at Nordea expect three more 25bp increases by the ECB, taking the deposit rate to 3%.