Investing.com – The euro edged higher against the yen on Wednesday, but gains were capped as investors remained jittery ahead of the end of the Federal Reserve’s policy setting meeting and as concerns over Greece’s planned bailout referendum lingered.
EUR/JPY hit 107.88 European afternoon trade, the daily high; the pair subsequently consolidated at 107.72, gaining 0.29%.
The pair was likely to find support at 106.48, Tuesday’s low and resistance at 109.23, Tuesday’s high.
Greek Prime Minister George Papandreou won the backing of his cabinet to hold a referendum on a EUR130 billion bailout package earlier and was to meet with French and German leaders to discuss the planned vote later in the day.
If Greece rejects the deal it would put the next tranche of aid to Athens in jeopardy, pushing the country closer to a default and increasing the risk of contagion in global financial markets.
Investors remained on edge amid speculation that the Fed could revise down its forecasts for economic growth at the end of its two-day policy-setting meeting later Wednesday.
Earlier in the day, a report showed that U.S. private sector employment increased more-than-expected in October, as the service sector expanded.
Payroll processing firm ADP said non-farm private employment rose by a seasonally adjusted 110,000 in October, beating expectations for an increase of 100,000.
The previous month’s figure was revised up to a gain of 116,000 from a previously reported increase of 91,000.
The euro was also higher against the U.S. dollar, with EUR/USD adding 0.77% to hit 1.3806.
Also Wednesday, reports showed that manufacturing activity in the euro zone contracted for a third consecutive month in October, while the German unemployment rate ticked up, rising for the first time in two years.
EUR/JPY hit 107.88 European afternoon trade, the daily high; the pair subsequently consolidated at 107.72, gaining 0.29%.
The pair was likely to find support at 106.48, Tuesday’s low and resistance at 109.23, Tuesday’s high.
Greek Prime Minister George Papandreou won the backing of his cabinet to hold a referendum on a EUR130 billion bailout package earlier and was to meet with French and German leaders to discuss the planned vote later in the day.
If Greece rejects the deal it would put the next tranche of aid to Athens in jeopardy, pushing the country closer to a default and increasing the risk of contagion in global financial markets.
Investors remained on edge amid speculation that the Fed could revise down its forecasts for economic growth at the end of its two-day policy-setting meeting later Wednesday.
Earlier in the day, a report showed that U.S. private sector employment increased more-than-expected in October, as the service sector expanded.
Payroll processing firm ADP said non-farm private employment rose by a seasonally adjusted 110,000 in October, beating expectations for an increase of 100,000.
The previous month’s figure was revised up to a gain of 116,000 from a previously reported increase of 91,000.
The euro was also higher against the U.S. dollar, with EUR/USD adding 0.77% to hit 1.3806.
Also Wednesday, reports showed that manufacturing activity in the euro zone contracted for a third consecutive month in October, while the German unemployment rate ticked up, rising for the first time in two years.