Forex - EUR/JPY dips as investors await Spanish austerity data

Published 09/26/2012, 09:39 PM
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Investing.com - The euro traded steady to lower against the yen on Thursday as investors sold or held onto the single currency in a wait-and-see trading session ahead of Madrid's unveiling of a new round of budget cuts later Thursday.

In Asian trading on Thursday, EUR/JPY hit 100.04, down 0.05%, up from a low of 99.91 and off a high of 100.07.

The pair sought to test support at 99.91, the earlier low, and resistance at 100.47, Wednesday's high.

The euro fell earlier ahead of Spain's plans to announce further budget cuts and other austerity measures later Thursday

Demonstrations broke out in the streets of Madrid on Wednesday before the Spanish government's plans to unveil new austerity measures to accompany the country's 2013 budget.

Yields on Spain's benchmark 10-year government bond topped 6 percent on concerns the country will run into problems financing itself.

Spain has yet to request a bailout, though the country has said it will meet its budgetary goals.

Weak U.S. housing data prompted many investors to run to safe-haven currencies such as the yen, meanwhile.

In the U.S. earlier, the Commerce Department reported that new home sales fell to a seasonally adjusted annual rate of 373,000 in August from 374,000 in July, whose figure was revised up from 372,000.

Analysts had expected new home sales to rise to 380,000 in August.

The euro, meanwhile, was down against the pound and down against the Canadian dollar, with EUR/GBP trading down 0.09%  at 0.7956 and EUR/CAD trading down 0.17% at 1.2668.

Later Thursday in the eurozone, official data on M3 money supply will publish, while Germany will produce government data on employment change.










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