Forex - EUR/JPY dips ahead of European retail sales data

Published 10/02/2012, 09:55 PM
Updated 10/02/2012, 09:56 PM
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Investing.com - The euro traded mixed to lower against the yen on Wednesday, caught in a tug-of-war between bulls who were hopeful for a Spanish bailout and bears worried eurozone retail sales to be released later will disappoint.

In Asian trading on Thursday, EUR/JPY hit 100.92, down 0.05%, up from a low of 100.89 and off a high of 101.11.

The pair sought to test support at 100.49, Tuesday's low, and resistance at 101.20, Tuesday's high.

A Reuters report that Spain may request a bailout in the coming days bolstered the euro, even though Germany was reportedly urging Madrid to hold off.

A bailout could open the door for the European Central Bank to buy sovereign Spanish debt carrying maturities of up to three years, which would lower borrowing costs in the crisis-weary country.

Yet until Spain requests the bailout or flat out rejects plans to do so, uncertainty will keep the currency moving up and down in choppy trading, as was the case earlier.

European policymakers are due to hold a summit later this month, and anticipation of announcements concerning Spain and other crisis-related issues moved the euro up and down against safe-haven currencies such as the yen.

Later Wednesday, the eurozone will release retail sales figures, and concerns the data may disappoint sent the euro dipping in and out of negative territory in Asian trading.

The euro, meanwhile, was down against the pound and down against the Canadian dollar, with EUR/GBP trading down 0.07%  at 0.8002 and EUR/CAD trading down 0.03% at 1.2711.

Later Wednesday, the eurozone is to release revised data on service sector activity as well as official data on retail sales.








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