Investing.com – The U.S. dollar erased losses against the yen on Wednesday, clawing back from a 5-day low, as risk aversion eased amid speculation that European policy makers were set to act to prevent the region’s debt crisis from spreading further.
USD/JPY clawed up from 83.41, the pair’s lowest since November 24, to hit 83.77 during early European trade, gaining 0.08%.
The pair was likely to find support at 82.93, the low of November 24 and resistance at 84.39, Monday’s high and a 2-month high.
Speculation mounted that European Central Bank would delay its exit from emergency liquidity measures after ECB President Jean-Claude Trichet said Tuesday that European policymakers needed to assert authority to fight “demanding” market conditions.
“I don’t believe that financial stability in the euro zone could really be called into question” Trichet said. Observers “are tending to underestimate the determination of governments.”
The yen was also down against the euro, with EUR/JPY soaring 0.83% to hit 109.53.
Later in the day, the U.S. was to release a report on ADP non-farm employment change, as well as official data on manufacturing activity. In addition, the Federal Reserve was to publish its Beige Book.
USD/JPY clawed up from 83.41, the pair’s lowest since November 24, to hit 83.77 during early European trade, gaining 0.08%.
The pair was likely to find support at 82.93, the low of November 24 and resistance at 84.39, Monday’s high and a 2-month high.
Speculation mounted that European Central Bank would delay its exit from emergency liquidity measures after ECB President Jean-Claude Trichet said Tuesday that European policymakers needed to assert authority to fight “demanding” market conditions.
“I don’t believe that financial stability in the euro zone could really be called into question” Trichet said. Observers “are tending to underestimate the determination of governments.”
The yen was also down against the euro, with EUR/JPY soaring 0.83% to hit 109.53.
Later in the day, the U.S. was to release a report on ADP non-farm employment change, as well as official data on manufacturing activity. In addition, the Federal Reserve was to publish its Beige Book.