Forex - EUR/JPY dips as austerity proposals ruffle feathers in Greece

Published 11/05/2012, 09:42 PM
Updated 11/05/2012, 09:43 PM
EUR/GBP
-
EUR/JPY
-
EUR/CAD
-
Investing.com - The euro slid against the yen on Tuesday amid concerns that opposition to austerity measures coming from within Greece's ruling coalition may threaten the flow of bailout money into the country.

In Asian trading on Tuesday, EUR/JPY hit 102.54, down 0.20% and up from a low of 102.53 and off a high of 102.66.

The pair sought to test support at 102.45, Monday's low, and resistance at 103.34, Monday's high.

Concerns continued to escalate that Greece will run into opposition to meeting austerity targets imposed on the country by European and multilateral creditors in exchange for bailout money.

The Greek government has sought approval for an austerity plan calling for EUR13.5 billion in spending cuts and tax hikes from Parliament, though coalition politicians have balked.

Greece must approve the reforms and pass a new budget to free up some EUR31.5 billion in aid arranged by the International Monetary Fund, the European Commission and the European Central Bank.

Some coalition politicians have said they oppose wage cuts.

Greek Prime Minister Antonis Samaras has said proposed wage cuts are the last of such measures, though investors still sidestepped the single currency to avoid uncertainty.

Greece's lawmakers are due to vote on the austerity proposal on Wednesday, which could determine if Athens receives its next shot of rescue funding.

The euro, meanwhile, was down against the pound and down against the Canadian dollar, with EUR/GBP trading down 0.06% at 0.8003 and EUR/CAD trading down 0.11% at 1.2737.

In the eurozone later Tuesday, Germany is to produce official data on factory orders, a leading indicator of production.









Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.