Euro recovers some early losses against Japanese Yen, ECB policy in focus | FXStreet

The euro pared some early losses against the Japanese yen during Tuesday’s European session, recovering from 177.85 to around 178.85, though it remained down about 0.3% on the day. Markets are looking ahead to upcoming central bank meetings, with expectations that both the ECB and the BoJ will raise interest rates. Analysts warn that moderate Eurozone growth could complicate the ECB’s tightening path, especially as higher energy prices add pressure. Commerzbank said a rate hike next week by the BoJ is already priced in at roughly 96%, with further increases expected quickly after. In that scenario, the yen is seen well positioned to appreciate further if expectations remain hawkish. Attention then turns to the ECB’s decision on Thursday, where a hike is described as fully priced, while what comes after is less clear amid growth concerns and energy costs.