Forex - The euro was up against the yen on Tuesday, but remained close to Monday’s 11-year low as sustained concerns over the financial crisis in the euro zone remained in focus.
EUR/JPY hit 100.13 during European afternoon trade, the pair’s highest since December 30; the pair subsequently consolidated at 100.05, rising 0.59%.
The pair was likely to find support at 99.35, Monday’s low and an 11-year low and resistance at 100.68, the high of December 30.
The single currency found support earlier after official data showed that the number of unemployed people in Germany fell more-than-expected in December, while the country’s jobless rate dropped to a record low.
Germany's Federal Statistics Office said the number of unemployed people fell by a seasonally adjusted 22,000 in December, easily surpassing expectations for a decline of 10,000.
The report also showed that Germany’s unemployment rate unexpectedly fell to a record low 6.8% in December from 6.9% in November.
The data came a day after a report showing that the rate of contraction of the euro zone’s manufacturing sector moderated in December.
Market sentiment was also bolstered after data showed that Chinese manufacturing activity returned to expansionary territory last month after contracting in November, easing concerns over a slowdown in the world’s second largest economy.
But the euro’s gains looked likely to remain limited as the threat of sovereign debt downgrades across the single currency bloc lingered, while investors looked ahead to bond auctions by Germany and France later in the week to gauge borrowing conditions in the region.
Elsewhere, the yen was higher against the U.S. dollar with USD/JPY retreating 0.19%, to hit 76.75.
Markets in Japan remained closed for the extended New Year's holiday.
Later in the day, the U.S. Institute of Supply Management was to publish a report on manufacturing activity and the Federal Reserve was to publish the minutes of its December policy meeting.
EUR/JPY hit 100.13 during European afternoon trade, the pair’s highest since December 30; the pair subsequently consolidated at 100.05, rising 0.59%.
The pair was likely to find support at 99.35, Monday’s low and an 11-year low and resistance at 100.68, the high of December 30.
The single currency found support earlier after official data showed that the number of unemployed people in Germany fell more-than-expected in December, while the country’s jobless rate dropped to a record low.
Germany's Federal Statistics Office said the number of unemployed people fell by a seasonally adjusted 22,000 in December, easily surpassing expectations for a decline of 10,000.
The report also showed that Germany’s unemployment rate unexpectedly fell to a record low 6.8% in December from 6.9% in November.
The data came a day after a report showing that the rate of contraction of the euro zone’s manufacturing sector moderated in December.
Market sentiment was also bolstered after data showed that Chinese manufacturing activity returned to expansionary territory last month after contracting in November, easing concerns over a slowdown in the world’s second largest economy.
But the euro’s gains looked likely to remain limited as the threat of sovereign debt downgrades across the single currency bloc lingered, while investors looked ahead to bond auctions by Germany and France later in the week to gauge borrowing conditions in the region.
Elsewhere, the yen was higher against the U.S. dollar with USD/JPY retreating 0.19%, to hit 76.75.
Markets in Japan remained closed for the extended New Year's holiday.
Later in the day, the U.S. Institute of Supply Management was to publish a report on manufacturing activity and the Federal Reserve was to publish the minutes of its December policy meeting.