Forex - EUR/JPY clings to gains after Berlin meeting

Published 01/09/2012, 09:00 AM
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Investing.com - The euro clung to gains against the yen on Monday, hovering just above an eleven-month low after French and German leaders met to advance discussions on tighter fiscal coordination in the euro zone.

EUR/JPY hit 98.25 during European afternoon trade, the daily high; the pair subsequently consolidated at 98, adding 0.12%.

The pair was likely to find support at 98.00 and resistance at 98.84, the high of January 6.

After meeting with French President Nicolas Sarkozy in Berlin earlier, German Chancellor Angela Merkel said she was optimistic that the European Union will be able to sign off its fiscal pact by the end of January.

Monday’s talks were closely watched as European leaders failed last year to come up with effective solutions to end Greece’s financial woes and a widening sovereign debt crisis in the single currency bloc that is threatening the global economy.

The euro found support earlier after official data showed that German exports jumped 2.5% in November; unexpectedly increasing the trade surplus and easing concerns over a slowdown in Europe’s largest economy.

Meanwhile, concerns over the ability of troubled euro zone nations to fulfill their sovereign funding needs continued to weigh, ahead of government debt auctions by Spain and Italy later in the week.

Elsewhere, the yen was higher against the U.S. dollar with USD/JPY shedding 0.15%, to hit 76.85.

Also Monday, a report showed that investor confidence in the euro zone improved more-than-expected this month, but remained in negative territory for the sixth consecutive month.


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