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Forex - Euro lower against dollar as yen strengthens after BoJ

Published 01/23/2013, 02:33 AM
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Investing.com - The euro was lower against the U.S. dollar on Wednesday as the yen strengthened broadly after easing steps announced by the Bank of Japan on Tuesday fell short of some market expectations.

EUR/USD hit 1.3290 during late Asian trade, the session low; the pair subsequently consolidated at 1.3302, slipping 0.14%.

The pair was likely to find support at 1.3255, the low of January 16 and resistance at 1.3370, Tuesday’s high.

The yen gained ground against the euro and the dollar on Wednesday after the BoJ adopted a 2% inflation target and said its open-ended commitment to buy assets would begin only next year.

The announcement disappointed market expectations for more aggressive and immediate easing steps.

The euro remained supported after data on Tuesday showed that the ZEW index of German economic sentiment improved to its highest level since May 2012 this month as concerns over the crisis in the euro zone eased.

The euro hit a one-week low against the yen, with EUR/JPY down 0.66% to 117.38 and was hovering close to 10-month highs against the broadly weaker pound, with EUR/GBP dipping 0.02% to 0.8409.

Later Wednesday the U.S. was to release government data on crude oil stockpiles, while the World Economic Forum was to continue for a second day in Davos, Switzerland.


 

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