Investing.com - The euro fell against the yen on Tuesday on fears Spain's debt crisis may be worsening as evidenced by spiking yields, which offset hopes Greece is showing signs of sticking with the euro.
In Asian trading on Tuesday, EUR/JPY hit 99.57, down 0.10%, up from a low of 99.56 and off a high of 99.78.
The pair sought to test support at 99.37, the low of May 24, and resistance at 100.23, the high of May 23.
The yield on the Spanish 10-year bond shot to 6.47% earlier, the highest this year.
Spain’s government is set to arrange a EUR19 billion recapitalization for one of the country’s largest commercial lenders, Bankia, which weighed down on the euro, as worries persisted that the Spanish government may need to rely on sovereign debt to shore up the financial institution.
Italy goes to auction later this week and the euro weakened on Tuesday on fears borrowing costs may spike there as well.
Concerns that Spain will struggle to prop up Bankia offset growing optimism in Greece, where the conservative New Democracy political party is up in the polls ahead of June 17 elections.
A strong New Democracy showing could lead to a coalition government that would favor staying in the eurozone.
The euro, meanwhile, was flat against the pound and down against the Canadian dollar, with EUR/GBP down 0.01% at 0.7997 and EUR/CAD down 0.08% and trading at 1.2830.
On Tuesday, the U.S. Conference Board's consumer confidence index will hit the wire, while in Europe, German inflation data and Spanish retails sales figures will publish as well.
Markets will keep an eye down the road to Friday's U.S. jobs report.
Worse-than-expected unemployment data could weaken the dollar by fueling talk the Federal Reserve will stimulate the economy via monetary easing.
In Asian trading on Tuesday, EUR/JPY hit 99.57, down 0.10%, up from a low of 99.56 and off a high of 99.78.
The pair sought to test support at 99.37, the low of May 24, and resistance at 100.23, the high of May 23.
The yield on the Spanish 10-year bond shot to 6.47% earlier, the highest this year.
Spain’s government is set to arrange a EUR19 billion recapitalization for one of the country’s largest commercial lenders, Bankia, which weighed down on the euro, as worries persisted that the Spanish government may need to rely on sovereign debt to shore up the financial institution.
Italy goes to auction later this week and the euro weakened on Tuesday on fears borrowing costs may spike there as well.
Concerns that Spain will struggle to prop up Bankia offset growing optimism in Greece, where the conservative New Democracy political party is up in the polls ahead of June 17 elections.
A strong New Democracy showing could lead to a coalition government that would favor staying in the eurozone.
The euro, meanwhile, was flat against the pound and down against the Canadian dollar, with EUR/GBP down 0.01% at 0.7997 and EUR/CAD down 0.08% and trading at 1.2830.
On Tuesday, the U.S. Conference Board's consumer confidence index will hit the wire, while in Europe, German inflation data and Spanish retails sales figures will publish as well.
Markets will keep an eye down the road to Friday's U.S. jobs report.
Worse-than-expected unemployment data could weaken the dollar by fueling talk the Federal Reserve will stimulate the economy via monetary easing.