Investing.com - The euro fell against the yen on Wednesday as investors flocked to safe-haven currencies ahead of the European Central Bank's Thursday monetary policy meeting as well as European retail sales figures due out later Wednesday.
In Asian trading on Wednesday, EUR/JPY hit 98.39, down 0.17%, up from a low of 98.25 and off a high of 98.41.
The pair sought to test support at 98.23, Monday's low, and resistance at 98.70, Monday's high.
Markets are waiting to see if the European Central Bank will announce plans to buy sovereign bonds issued by countries like Spain and Italy to ease the debt crisis.
Such a plan could bolster the single currency, though the euro fell against the yen as investors held off on more definitive trading strategies until that announcement comes.
Eurozone retail sales figures are due out later Wednesday, and investors stayed on the sidelines in safe-haven yen positions until the numbers hit the wire and give markets a better glimpse into the health of the European economy and whether or not the ECB will move forward with plans to buy bonds.
The euro continued to suffer from weak manufacturing data released on Monday.
Revised data released earlier this week revealed the eurozone’s manufacturing sector contracted for the 13th consecutive month in August.
Global research firm Markit said the eurozone's manufacturing purchasing managers’ index hit 45.1, just short of analysts' calls for a 45.3 reading.
The reading came in well below the 50.0 mark that separates growth from contraction.
Markit also reported that Germany's manufacturing PMI hit 44.7, below analysts' calls for 45.1 reading.
The euro, meanwhile, was down against the pound and the Canadian dollar, with EUR/GBP trading down 0.23% at 0.7900 and EUR/CAD trading down 0.19% at 1.2367.
In Asian trading on Wednesday, EUR/JPY hit 98.39, down 0.17%, up from a low of 98.25 and off a high of 98.41.
The pair sought to test support at 98.23, Monday's low, and resistance at 98.70, Monday's high.
Markets are waiting to see if the European Central Bank will announce plans to buy sovereign bonds issued by countries like Spain and Italy to ease the debt crisis.
Such a plan could bolster the single currency, though the euro fell against the yen as investors held off on more definitive trading strategies until that announcement comes.
Eurozone retail sales figures are due out later Wednesday, and investors stayed on the sidelines in safe-haven yen positions until the numbers hit the wire and give markets a better glimpse into the health of the European economy and whether or not the ECB will move forward with plans to buy bonds.
The euro continued to suffer from weak manufacturing data released on Monday.
Revised data released earlier this week revealed the eurozone’s manufacturing sector contracted for the 13th consecutive month in August.
Global research firm Markit said the eurozone's manufacturing purchasing managers’ index hit 45.1, just short of analysts' calls for a 45.3 reading.
The reading came in well below the 50.0 mark that separates growth from contraction.
Markit also reported that Germany's manufacturing PMI hit 44.7, below analysts' calls for 45.1 reading.
The euro, meanwhile, was down against the pound and the Canadian dollar, with EUR/GBP trading down 0.23% at 0.7900 and EUR/CAD trading down 0.19% at 1.2367.