- Posted on January 30, 2025
- News
- By FC Team
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By Wayne ColeSYDNEY (Reuters) -The yen made broad gains on Thursday as Japan looks on track to keep raising interest rates as others cut, with the European Central Bank seen certain to deliver just the latest in a string of easings today.The yen was almost the sole mover in Asia, as the dollar eased 0.4% to 154.61 and the euro a similar amount to 161.10 yen.The single currency was otherwise trading nearly flat on the dollar at $1.0416, having tested support around $1.0380 overnight when the Federal Reserve paused it easing cycle.Markets are more than fully priced for the ECB to trim rates by 25 basis points to 2.75% later on Thursday, with even a small chance of 50 basis points given how weak the EU economy is."The euro area's inflationary pulse is evaporating, and the risk of a sustained inflation undershoot is material," warned analysts at ANZ."The complex economic and political challenges facing the euro area's largest economies increases the onus on the ECB to support growth."This is one reason markets are priced for further cuts in March, April and June, with about 90 basis points of easing implied for 2025.Were ECB President Christine Lagarde to affirm such a dovish outlook at her media conference later Thursday, it could pile fresh pressure on the euro.In contrast, Bank of Japan Deputy Governor Ryozo Himino said on Thursday that Japan's central bank will continue to raise interest rates if the economy and prices move in line with the bank's forecasts.investing.com