Euro Recovers Against Yen as ECB Rate Hike Looms

The Euro has partially recovered its losses against the Japanese Yen, but market experts remain bearish on the pair. According to Commerzbank analysts, the strong Japanese Yen outlook is expected to continue amid expectations of further interest rate hikes by the Bank of Japan (BoJ). With a 96% chance of an interest rate hike next week priced in, the market expects additional increases to follow quickly.

The European Central Bank's (ECB) interest rate decision on Thursday is also being closely watched. While experts are confident that the ECB will hike interest rates, they warn that moderate Eurozone economic growth and higher energy prices could complicate the central bank's monetary policy path.