Forex - EUR/JPY drops ahead of Spanish growth numbers

Published 04/29/2012, 11:16 PM
Updated 04/29/2012, 11:17 PM
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Investing.com - The euro fell against the yen on Monday on fears pending Spanish gross domestic product numbers will disappoint and fuel concerns the European debt crisis is intensifying.

In Asian trading on Monday, EUR/JPY hit 106.10, down 0.28%, up from a low of 106.06 and off a high of 106.44.

The pair sought to test support at 105.29, the low of April 17, and resistance at 107.48, the high of April 27.

Concerns are growing the European debt crisis is building in Spain, especially after U.S. ratings agency Standard & Poor's downgraded the country, the second such move this year, and slapped a negative outlook rating on the nation as well.

Furthermore, Spain's jobless rate recently hit 24.4%, an 18-year high, the National Statistics Institute reported.

Spain is due to release preliminary figures on first-quarter gross domestic product figures and the market grew increasingly worried on Monday the number will suggest the debt crisis is deepening.

Concerns retail sales in Europe's largest economy, Germany, will disappoint had the market on edge as well.

Japan was closed for holiday, but the market continued to shrug off a Bank of Japan decision to expand a bond-back program by JPY10 trillion to weaken the currency.

The euro, meanwhile, was down against the pound and down against the Canadian dollar, with EUR/GBP down 0.20% at 0.8132 and EUR/CAD down 0.08% and trading at 1.2985.

Later Monday, on top of Spanish growth figures and German retail sales, the eurozone is to release preliminary inflation data, while the European Central Bank is to publish a report on money supply.





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