Investing.com – The euro extended earlier losses against the yen on Wednesday, tumbling to a 5-week low, as risk aversion escalated after official data showed that the U.S. posted a larger-than-expected trade deficit in June.
EUR/JPY hit 109.90 during European afternoon trade, the pair's lowest since July 7; the pair subsequently consolidated at 110.00, plunging 2.30%.
The pair was likely to find support at 109.14 the low of July 6 and resistance at 113.75, Tuesday's high.
Earlier in the day, the Bureau of Economic Analysis said the U.S. trade deficit widened to a seasonally adjusted USD 49.9 billion in June, after rising USD 42.3 billion in May.
Economists had expected the trade deficit to expand to USD 42.5 billion in June.
The report said that the trade deficit increased USD 22.8 billion year-on-year.
The data added to fears that the global economic recovery is losing momentum.
The yen was also up against the U.S. dollar, with USD/JPY shedding 0.55% to hit 84.96.
Later in the day, the U.S. was to release data on its federal budget balance.
EUR/JPY hit 109.90 during European afternoon trade, the pair's lowest since July 7; the pair subsequently consolidated at 110.00, plunging 2.30%.
The pair was likely to find support at 109.14 the low of July 6 and resistance at 113.75, Tuesday's high.
Earlier in the day, the Bureau of Economic Analysis said the U.S. trade deficit widened to a seasonally adjusted USD 49.9 billion in June, after rising USD 42.3 billion in May.
Economists had expected the trade deficit to expand to USD 42.5 billion in June.
The report said that the trade deficit increased USD 22.8 billion year-on-year.
The data added to fears that the global economic recovery is losing momentum.
The yen was also up against the U.S. dollar, with USD/JPY shedding 0.55% to hit 84.96.
Later in the day, the U.S. was to release data on its federal budget balance.