The euro has continued its post-ECB slide today, dropping against the dollar ahead of Wednesday's Fed meeting, and falling to a 7 week low against the Japanese yen in the lead up to Friday's intensely anticipated Bank of Japan meeting.
The euro has shed 0.6 per cent against the yen to Y133, the lowest level since early September and its fourth straight day of declines. The euro is down 2.2 per cent against the yen since European Central Bank president Mario Draghi indicated more monetary stimulus could be on the way as soon as early December.
Analysts have mixed views on what the BoJ will do at its meeting on Friday. Some point to stagnant growth and weak inflation to suggest the BoJ could ease policy further.
Others believe BoJ easing has already weakened the yen just about as far as it can, and that further easing would be less effective and therefore unlikely.
BoJ inaction on Friday could see the yen jump even further against its QE-weakened counterpart, the euro.
