Investing.com - The euro rose against the yen on Thursday as markets grew increasingly optimistic the European Central Bank will announce plans to buy sovereign debt to lower borrowing costs in countries like Spain, Italy and elsewhere.
In Asian trading on Thursday, EUR/JPY hit 98.83, up 0.05%, up from a low of 98.80 and off a high of 98.88.
The pair sought to test support at 97.99, Tuesday's low, and resistance at 98.91, Tuesday's high.
Bloomberg reported earlier that the ECB was planning to launch "unlimited, sterilized" bond purchases, meaning the monetary authority would buy Spanish, Italian or other debt with money elsewhere in the financial system and not printed anew in a fashion carried out by the U.S. Federal Reserve.
The plan, known as the Monetary Outright Transaction proposal, will involve purchases of government bonds carrying maturities of up to three years.
The news sent the euro gaining against the yen as investors viewed the move as a big step towards controlling the European debt crisis.
Elsewhere in Europe, eurozone retail sales contracted although in line with expectations, dropping 0.2% in July and bringing the annualized rate of decline to 1.7%.
The euro, meanwhile, was slightly higher against the pound and up against the Canadian dollar, with EUR/GBP trading up 0.01% at 0.7924 and EUR/CAD trading up 0.02% at 1.2485.
Later Thursday, the ECB will announce its benchmark interest rate and will also hold a press conference with bank chief Mario Draghi, which will be closely watched for details of the bank’s bond purchasing program.
Elsewhere, Germany is to release a report on factory orders, a leading indicator of production.
Bank of Japan Governor Masaaki Shirakawa is scheduled to speak in Tokyo, and his comments will be closely watched for any indications of the possible future direction of monetary policy.
In Asian trading on Thursday, EUR/JPY hit 98.83, up 0.05%, up from a low of 98.80 and off a high of 98.88.
The pair sought to test support at 97.99, Tuesday's low, and resistance at 98.91, Tuesday's high.
Bloomberg reported earlier that the ECB was planning to launch "unlimited, sterilized" bond purchases, meaning the monetary authority would buy Spanish, Italian or other debt with money elsewhere in the financial system and not printed anew in a fashion carried out by the U.S. Federal Reserve.
The plan, known as the Monetary Outright Transaction proposal, will involve purchases of government bonds carrying maturities of up to three years.
The news sent the euro gaining against the yen as investors viewed the move as a big step towards controlling the European debt crisis.
Elsewhere in Europe, eurozone retail sales contracted although in line with expectations, dropping 0.2% in July and bringing the annualized rate of decline to 1.7%.
The euro, meanwhile, was slightly higher against the pound and up against the Canadian dollar, with EUR/GBP trading up 0.01% at 0.7924 and EUR/CAD trading up 0.02% at 1.2485.
Later Thursday, the ECB will announce its benchmark interest rate and will also hold a press conference with bank chief Mario Draghi, which will be closely watched for details of the bank’s bond purchasing program.
Elsewhere, Germany is to release a report on factory orders, a leading indicator of production.
Bank of Japan Governor Masaaki Shirakawa is scheduled to speak in Tokyo, and his comments will be closely watched for any indications of the possible future direction of monetary policy.