Central Banks In Developing Countries Suffer From The Devaluation Of Their Currencies.

Since the beginning of the year, crude oil has led to a sharp fall in commodities. At least 16 countries, including Russia's rouble, have reached a record low. The euro and yen are mostly due to the pursuit of hedge funds.

Substantial appreciation.

This makes the European Central Bank anxious to weaken its currency and stimulate inflation and economic recovery.

The Japanese yen surged 1.2% yesterday to a high of 116.15 a year, rising 2.5% against the US dollar during the year.

The euro also rose 0.45% yesterday, rising 0.2% against the US dollar during the year.

Moreover, the narrowing of the interest rate gap between the euro zone and the US and the further disintegration of the euro and the effective exchange rate indicate that the euro will further rise.

Data from the US Commodity Futures Trading Commission (CFTC) show that the yen position held by hedge funds and large institutional investors has been showing a net bull position for the first time since 2012.

At today's ECB conference, President Delagi may have the chance to pressure the euro.

"We will continue to pay close attention to the near future.

What will be the impact on Japan's economy and prices, "Kuroda Higashihiko said.

Since its massive stimulus package in October 2014, the bank has been maintaining monetary policy stability.

But the collapse of oil prices and weak household spending have reduced core consumer inflation to near zero levels, making the central bank face more pressure to introduce more measures.

The Bank of Japan will hold a monetary policy conference next week.

"We think Japan.

The probability of taking action in January is less than 50%, but the possibility is rising, "said Masamichi Adachi, an economist at JP Morgan in Japan.

The ECB's monetary policy conference will be held tonight.

Bloomberg's recent survey of economists showed that 61% of the people thought the ECB would further relax monetary policy this year.

Of these people, 45% thought that the time when the European Central Bank was overweight and relaxed was in March this year, and 34% thought it might be June.

"The ECB and the Bank of Japan will not see their currencies becoming stronger," said Lee Ferridge, State Street Global Markets, head of North American macroeconomic policy at dau Fu bank, told Bloomberg.

"If the euro / dollar goes back to 1.15, you may at least see drudge's speech and there will be more comments on the stimulus."

Japanese Central Bank Kuroda Higashihiko said today that the recent global market crash is one of the risks facing Japan's economic outlook, and stressed that the Bank of Japan is ready to expand monetary stimulus when necessary to ensure a 2% inflation target, although he said that it does not consider negative interest rates at present.

We will see if the ECB will launch tonight.