Forex - EUR/JPY drops on deepening European uncertainty

Published 05/08/2012, 09:55 PM
Updated 05/08/2012, 09:57 PM
EUR/GBP
-
EUR/JPY
-
EUR/CAD
-
Investing.com - The euro fell against the yen on Wednesday as the fate of Greece's political framework remained up in the air after weekend elections, prompting investors to buy safe-haven currencies, which include the yen.

In Asian trading on Wednesday, EUR/JPY hit 103.68, down 0.19%, up from a low of 103.64 and off a high of 103.94.

The pair sought to test support at 103.24, the low of May 6, and resistance at 104.45, the high of May 7.

Safe-haven currencies such as the yen and the dollar saw demand early in the day amid a global risk-off trading session fueled by deepening European uncertainty.

In France, socialist Francois Hollande defeated President Nicolas Sarkozy in weekend elections, as voters rejected austerity measures supported by the outgoing administration and opted to embrace Hollande's calls to prioritize growth over cutting spending.

Concerns are brewing that while Europe's economic motor and austerity champion Germany will welcome a Hollande victory, relations won't be as cozy between the two nations as they were under Sarkozy, at least when it comes to navigating Europe out of the debt crisis.

Meanwhile in Greece, a crisis-weary nation is shifting through the fallout of last weekend's parliamentary elections.

The country's leading political parties failed to secure 50% of the votes, with smaller, fringe parties taking a larger slice of the electoral pie.

Concerns are brewing that Greek political parties won't agree on a coalition government by June, when a tranche of bailout money is due, especially amid growing sentiment that more and more policymakers have had enough with austerity measures like layoffs and spending cuts.

Talk of Greece abandoning the euro is also growing, a scenario that could potentially roil currency markets.

The euro, meanwhile, was down against the pound and down against the Canadian dollar, with EUR/GBP down 0.10% at 0.8041 and EUR/CAD down 0.03% and trading at 1.2986.








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.