Euro Sags, Yen Jumps as Investors Bet on BOJ Shift

LONDON—The euro grazed a three-week low on Thursday, driven by mounting expectations that the European Central Bank (ECB) may cut rates as early as March, while the prospect of a shift in Japanese policy gave the yen its biggest one-day boost since January.
The euro is heading for its biggest weekly fall since May, fuelled by a dramatic repricing of interest rate expectations for 2024, although caution around Friday’s U.S. non-farm payrolls has kept trading volatility subdued.
Falling inflation, a slowdown in major economies such as Germany and softness in the labour market have prompted traders to assume rates will fall to 3.0 percent, from 4 percent currently, by September, from an expectation of 3.4 percent just two weeks ago….