EUR/JPY edges lower as higher Eurozone inflation shifts focus to ECB signals

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EUR/JPY loses 0.15% on Thursday, trading near 187.30 at the time of writing and extending its consolidation above the 187.00 level seen since the beginning of the week.

EUR/JPY declines slightly on Thursday, consolidating above 187.00.
Eurozone inflation is revised higher in March, reaching its highest level since July 2024.
Markets now await the European Central Bank’s latest monetary policy meeting accounts.

EUR/JPY loses 0.15% on Thursday, trading near 187.30 at the time of writing and extending its consolidation above the 187.00 level seen since the beginning of the week.

The latest inflation data from the Eurozone is providing some fundamental support for the single currency. According to revised figures, the Eurozone Harmonized Index of Consumer Prices (HICP) increased by 1.3% MoM in March, accelerating from 0.6% in February and slightly above the preliminary estimate of 1.2%. On an annual basis, inflation was revised higher to 2.6%, up from 1.9% previously and marking its highest level since July 2024. Meanwhile, core inflation was revised to 2.3% YoY, slightly below the initial estimate of 2.4%.

The increase in headline inflation, largely driven by energy prices, could encourage the European Central Bank (ECB) to adopt a more hawkish tone at its next monetary policy meeting scheduled for April 29-30. However, ECB President Christine Lagarde recently stressed that the institution must remain “completely agile” regarding interest rates, while indicating that policymakers do not have a bias toward tightening.

Nevertheless, financial markets continue to anticipate two 25-basis-point rate hikes this year, although the probability of a move at the April meeting remains limited. According to Reuters, investors now almost fully price in a first hike by June.

Attention now turns to the release of the accounts of the European Central Bank’s March monetary policy meeting, which could provide further insight into how policymakers assess the persistence of inflationary pressures. Speeches from several ECB officials later in the day are also expected to gather market focus.

In Japan, Japan’s Finance Minister Satsuki Takayama stated that Tokyo and Washington have agreed to strengthen communication on exchange rates following a meeting with US Treasury Secretary Scott Bessent. These comments underline the Japanese authorities’ commitment to limiting excessive weakness in the Japanese Yen (JPY), although the immediate market impact has remained limited.

Euro Price Today

The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the strongest against the New Zealand Dollar.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		0.11%	0.10%	-0.03%	-0.07%	-0.02%	0.37%	0.22%
EUR	-0.11%		-0.02%	-0.15%	-0.18%	-0.13%	0.23%	0.10%
GBP	-0.10%	0.02%		-0.13%	-0.17%	-0.11%	0.25%	0.11%
JPY	0.03%	0.15%	0.13%		-0.05%	0.02%	0.34%	0.24%
CAD	0.07%	0.18%	0.17%	0.05%		0.06%	0.42%	0.29%
AUD	0.02%	0.13%	0.11%	-0.02%	-0.06%		0.36%	0.25%
NZD	-0.37%	-0.23%	-0.25%	-0.34%	-0.42%	-0.36%		-0.13%
CHF	-0.22%	-0.10%	-0.11%	-0.24%	-0.29%	-0.25%	0.13%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent EUR (base)/USD (quote).