A recent survey conducted by the Bank of Japan (BoJ) reveals that 85.7% of Japanese households anticipate a rise in prices a year from now. This figure shows a slight increase from the previous survey, where 85.6% of households held this expectation. The survey highlights growing inflation concerns among the Japanese populace amid global economic fluctuations.
The survey, conducted quarterly by the BoJ, also reveals long-term inflation expectations. It shows that 82.5% of households expect prices to escalate over the next five years, compared to 83.6% in the previous assessment. Households predict an average inflation rate of 9.2% five years from now, with a median expectation of 5.0%. These findings underscore persistent anxieties about inflationary pressures in Japan.
In the broader economic context, the European Central Bank's anticipation of further rate cuts has put downward pressure on the Euro against the US dollar. As a result, the EUR/USD pair weakened to near 1.0290 during the early European session on Friday. The Euro's depreciation illustrates the market's reaction to anticipated monetary policy adjustments.
Meanwhile, the gold market remains robust, with prices standing firm near a one-month high. This resilience in gold prices is attributed to bets on additional rate cuts by the Federal Reserve and the recent decline in US bond yields. The US dollar's performance also supports the precious metal, as investors seek safe-haven assets amid market uncertainty.
In contrast, Bitcoin continues its upward trajectory, trading above $100,900 on Friday. The cryptocurrency's performance reflects its growing appeal as an alternative asset class in an environment characterized by economic volatility and evolving monetary policies.
The EUR/USD pair faces primary support at the psychological level of 1.2100, with its 14-month low recorded at 1.2099. These technical levels are closely monitored by market participants as they navigate shifting currency dynamics influenced by central banks' policy signals.
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