EURJPY

Euro / Japanese yen

According to the Cabinet Office's December economic report, Japan is going to keep a close eye on the factors such as the spread of COVID-19 in China, economic downturn risks, sharp price increases and supply issues.

The yen slightly weakened on Wednesday but retained its advance against the dollar seen in yesterday's session. Traders are still confused by the Bank of Japan’s policy tweak.

Consumer sentiment in Germany will continue to recover in the new year. A recent survey by the GfK institute showed that the government's actions aimed at mitigating the consequences of soaring energy prices appear to have been effective.

The country’s grid operator said that there was little prospect of power cuts in January as nuclear and hydroelectric output had rebounded and electricity demand had lowered.

The Bank of Japan's next move could be a reversal in its negative rate (-0.1%), as Goldman Sachs Group Inc. said. This step can be taken due to an unexpected widening of the government bond yield band (JGB).