Black Friday Sale! Save huge on InvestingProGet up to 60% off

Forex - EUR/JPY hits 5-year high on hawkish ECB comments

Published 12/27/2013, 12:24 PM
Updated 12/27/2013, 12:25 PM
EUR/USD
-
EUR/GBP
-
EUR/JPY
-
Investing.com - The euro strengthened to five-year highs against the yen not on Friday after European Central Bank Governing Council member Jens Weidmann warned against keeping interest rates low.

In U.S. trading on Friday, EUR/JPY was up 0.77% at 144.62, up from a low of 143.44 and off a high of 145.69.

The pair sought to test support at 142.10, Monday's low, and resistance at 146.84,  the high from Oct. 3, 2008.

European Central Bank Governing Council member Jens Weidmann said earlier that keeping interest rates low may endanger political reforms.

According to Germany’s Bild newspaper, Weidmann said low inflation shouldn’t be used to justify loose monetary policy.

"We must take care to raise interest rates again in a timely manner should inflation pressures build," he reportedly said, and his comments sent the euro posting strong gains against most major currencies, the yen especially.

Meanwhile in Japan, hit-or-miss data weakened the yen against the single currency.

Official data earlier showed that household spending in Japan fell 0.2% in November compared to a year earlier and after a 0.9% rise in October. Analysts had expected household spending to increase by 1.7% last month.

A separate report showed that Tokyo's core consumer price inflation, which excludes fresh food, rose at an annualized rate of 0.7% in December, in line with expectations, after a 0.6% rise the previous month.

Preliminary government data also showed that industrial production in Japan ticked up 0.1% last month, confounding expectations for a 0.4% increase after rising 1% in October.

In addition, data showed that Japan's retail sales rose 4% in November on year, above expectations for a 2.9% gain. October's retail sales rose 2.3%.

The euro, meanwhile, was up against the pound and up against the U.S. dollar, with EUR/GBP trading up 0.03% at 0.8346 and EUR/USD trading up 0.53% at 1.3763.










Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.