Investing.com - The euro rallied to a one-and-a-half month high against the yen on Tuesday, as demand for the single currency was boosted by hopes for fresh moves by the European Central Bank to stem the euro zone’s debt crisis, as well as a well-received Spanish bond auction.
EUR/JPY hit 99.00 during European afternoon trade, the pair’s highest since July 6; the pair subsequently consolidated at 99.03, jumping 1%.
The pair was likely to find support at 97.94, the day’s low and resistance at 100.32, the high of July 5.
The euro found broad support after the U.K.’s Telegraph newspaper said earlier that it could confirm weekend reports that the European Central Bank may set a cap on peripheral euro zone bond yields at its next policy meeting in September.
On Monday, the ECB dismissed the reports, saying it was “misleading” to report on decisions which have not yet been taken.
Speculation over the possibility of ECB intervention saw Spanish borrowing costs fall at an auction of short-term government debt, with Madrid successful auctioning EUR4.5 billion of bills, the top end of the target range.
Meanwhile, investors were eyeing a series of upcoming euro zone meetings, amid hopes that leaders would make some progress on steps to the stem the crisis in the region.
Luxemburg’s Prime Minister Jean-Claude Juncker, who also heads the group of euro zone finance ministers, was to hold talks with Greek Prime Minister Antonis Samaras on Wednesday, to discuss a two-year extension of the country’s economic reform program.
German Chancellor Angela Merkel is to meet with French President Francois Hollande on Thursday, while Antonis Samaras is to meet with the French and German leaders later in the week.
Elsewhere, the yen was steady against the U.S. dollar with USD/JPY easing up 0.04%, to hit 79.48.
Trade looked likely to remain subdued on Tuesday, with no significant economic data releases on the calendar, while volumes were light with many market participants on summer holidays.
EUR/JPY hit 99.00 during European afternoon trade, the pair’s highest since July 6; the pair subsequently consolidated at 99.03, jumping 1%.
The pair was likely to find support at 97.94, the day’s low and resistance at 100.32, the high of July 5.
The euro found broad support after the U.K.’s Telegraph newspaper said earlier that it could confirm weekend reports that the European Central Bank may set a cap on peripheral euro zone bond yields at its next policy meeting in September.
On Monday, the ECB dismissed the reports, saying it was “misleading” to report on decisions which have not yet been taken.
Speculation over the possibility of ECB intervention saw Spanish borrowing costs fall at an auction of short-term government debt, with Madrid successful auctioning EUR4.5 billion of bills, the top end of the target range.
Meanwhile, investors were eyeing a series of upcoming euro zone meetings, amid hopes that leaders would make some progress on steps to the stem the crisis in the region.
Luxemburg’s Prime Minister Jean-Claude Juncker, who also heads the group of euro zone finance ministers, was to hold talks with Greek Prime Minister Antonis Samaras on Wednesday, to discuss a two-year extension of the country’s economic reform program.
German Chancellor Angela Merkel is to meet with French President Francois Hollande on Thursday, while Antonis Samaras is to meet with the French and German leaders later in the week.
Elsewhere, the yen was steady against the U.S. dollar with USD/JPY easing up 0.04%, to hit 79.48.
Trade looked likely to remain subdued on Tuesday, with no significant economic data releases on the calendar, while volumes were light with many market participants on summer holidays.