Investing.com - The euro erased losses against the yen on Thursday, as sentiment was lifted by positive U.S. economic data but the shared currency remained under pressure amid ongoing concerns over Greece’s second bailout.
EUR/JPY eased off 101.93, the pair’s lowest since February 14, to hit 102.57 during European afternoon trade, edging up 0.06%.
The pair was likely to find support at 101.81, the low of February 14 and resistance at 103.21, the high of February 13.
Sentiment slightly improved earlier after official data showed that U.S. unemployment claims fell unexpectedly to their lowest level since March 2008 last week, falling to 348,000, confounding expectations for an increase to 364,000.
In a separate report the U.S. Census Bureau said the number of building permits issued in January rose 0.7% to a seasonally adjusted 0.68 million, broadly in line with market expectations.
Data also showed that core producer price inflation rose more-than-expected in January by 0.4%.
But the euro remained under pressure after a teleconference of euro zone finance ministers on Wednesday failed to reach a decision on Greece's new bailout and private-debt restructuring issues.
European Union officials are believed to be looking at delaying all or part of Greece's bailout until after a general election in the country, which is expected to take place in April.
Officials are examining the possibility of extending a bridging loan to Athens, which would allow Greece to meet EUR14.4 billion in repayments which come due on March 20, avoiding a default.
Sentiment was also hit after ratings agency Moody's warned earlier that it may cut the credit ratings of 114 banks in 16 countries across Europe, citing banks' vulnerability to the sovereign debt crisis in the euro zone.
The single currency was also lower against the pound with EUR/GBP shedding 0.41%, to hit 0.8291.
Also Thursday, the European Central Bank said in its monthly bulletin that it expects the euro zone economy to contract this year by 0.1%, slashing its projections for 0.8% growth.
EUR/JPY eased off 101.93, the pair’s lowest since February 14, to hit 102.57 during European afternoon trade, edging up 0.06%.
The pair was likely to find support at 101.81, the low of February 14 and resistance at 103.21, the high of February 13.
Sentiment slightly improved earlier after official data showed that U.S. unemployment claims fell unexpectedly to their lowest level since March 2008 last week, falling to 348,000, confounding expectations for an increase to 364,000.
In a separate report the U.S. Census Bureau said the number of building permits issued in January rose 0.7% to a seasonally adjusted 0.68 million, broadly in line with market expectations.
Data also showed that core producer price inflation rose more-than-expected in January by 0.4%.
But the euro remained under pressure after a teleconference of euro zone finance ministers on Wednesday failed to reach a decision on Greece's new bailout and private-debt restructuring issues.
European Union officials are believed to be looking at delaying all or part of Greece's bailout until after a general election in the country, which is expected to take place in April.
Officials are examining the possibility of extending a bridging loan to Athens, which would allow Greece to meet EUR14.4 billion in repayments which come due on March 20, avoiding a default.
Sentiment was also hit after ratings agency Moody's warned earlier that it may cut the credit ratings of 114 banks in 16 countries across Europe, citing banks' vulnerability to the sovereign debt crisis in the euro zone.
The single currency was also lower against the pound with EUR/GBP shedding 0.41%, to hit 0.8291.
Also Thursday, the European Central Bank said in its monthly bulletin that it expects the euro zone economy to contract this year by 0.1%, slashing its projections for 0.8% growth.