Euro Soars Against Yen on ECB Tightening Expectations

The Euro has strengthened against the Japanese Yen due to increased expectations of additional European interest rate hikes by the European Central Bank (ECB).

This expectation is supported by strong Eurozone inflation and economic growth, with inflation accelerating to 2.9% YoY in July from 2.8% previously.

The ECB's September meeting now sees a 90% chance of an interest rate hike, with markets pricing in more than two additional rate increases.