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Forex - EUR/JPY gains on Greek budget vote, Japan data weighs

Published 11/11/2012, 09:53 PM
Updated 11/11/2012, 09:55 PM
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Investing.com - The euro rose against the yen on Monday after Greece's parliament approved a new budget for next year.

European and multilateral creditors required a new budget in order for Athens to tap fresh bailout money.
 
In Asian trading on Monday, EUR/JPY hit 101.12, up 0.11% and up from a low of 101.04 and off a high of 101.25.

The pair sought to test support at 100.97, Friday's low, and resistance at 101.75, Friday's high.

The euro gained ground on sentiment that Greece agreed to approve an austere budget days after approving EUR13.5 billion in spending cuts and tax hikes needed to appease creditors.

News that Greece's political circles continue to favor sticking with austerity policies required for bailout money gave the single currency support against safe-haven currencies such as the yen.

Trading was choppy, however, as market participants were not expecting European Union officials to disburse EUR31.5 billion in fresh rescue funding due to Greece just yet.

European finance ministers are due to meet later in Brussels on Monday, though they may spend time reviewing Greece's commitment to austerity.

Meanwhile in Japan, official data revealed the economy contracted 3.5% in the third quarter of this year, which weakened the yen.

Elsewhere, the euro was up against the pound and down against the Canadian dollar, with EUR/GBP trading up 0.05% at 0.8000 and EUR/CAD trading down 0.13% at 1.2714.

Later Monday, eurozone finance ministers will meet Brussels to discuss Greece and the broader eurozone debt crisis.










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