Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Forex - EUR/JPY drops on IMF forecast cuts, braces for output data

Published 10/09/2012, 09:39 PM
EUR/GBP
-
EUR/JPY
-
EUR/CAD
-
Investing.com - The euro dipped against the yen on Wednesday after the International Monetary Fund announced a decision to cut its 2012 and 2013 global growth forecasts, which sparked demand for safe-haven currencies.

The single currency traded lower also as investors braced for Italian and French industrial production data.

In Asian trading on Wednesday, EUR/JPY hit 100.73, down 0.11%, up from a low of 100.54 and off a high of 100.79.

The pair sought to test support at 100.49, Tuesday's low, and resistance at 101.84, Tuesday's high.

The International Monetary Fund said that the global economy will expand 3.3% this year and 3.6% in 2013.

Both forecasts represent downward revisions from July's calls for 3.5% growth this year and 3.9% in 2013.

The downward revisions sparked demand for the safe-haven dollar and yen, which sent the euro falling.

The euro also fell as investors jumped to the sidelines ahead of the release of French and Italian industrial production data.

Uncertainty elsewhere also kept investors in the safety of the yen.

Protestors clashed with police in Athens to mark German Chancellor Angela Merkel's visit to Greece, as the German leader urged Greeks to stick with austerity measures, adding the country will be better off in the long run.

Uncertainty over whether Spain will seek a bailout kept the euro down as well.

The euro, meanwhile, was down against the pound and down against the Canadian dollar, with EUR/GBP trading down 0.09%  at 0.8044 and EUR/CAD trading down 0.08% at 1.2597.

In the U.S. on Wednesday, the Federal Reserve is to publish its Beige Book, which outlines current economic conditions.










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.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.