Investing.com - The euro strengthened against the yen on Wednesday after industry data revealed German consumer sentiment may be more upbeat than markets once anticipated.
In U.S. trading on Wednesday, EUR/JPY was up 0.81% at 138.58, up from a low of 137.30 and off a high of 138.79.
The pair sought to test support at 137.03, Monday's low, and resistance at 138.79, the earlier high.
The euro rose against the yen and other currencies after data showed that the forward-looking Gfk index of German consumer climate rose to a six-year high of 7.4 for December from 7.1 in November. Economists had expected an unchanged reading.
The euro saw additional support after German Chancellor Angela Merkel reached a deal to form a coalition government with the Social Democrats on Wednesday, following weeks of negotiations.
The yen, meanwhile, came under pressure after Bank of Japan board member Sayuri Shirai raised doubts over whether the bank’s 2% inflation target can be reached by 2015 because of downside risks to growth.
The euro, meanwhile, was down against the pound and down against the U.S. dollar, with EUR/GBP trading down 0.38% at 0.8338 and EUR/USD trading down 0.06% at 1.3565.
The pound saw support after data showed that a second estimate of U.K. third-quarter gross domestic product was unchanged at 0.8% quarter-on-quarter, while the annual rate of growth was also unchanged at 1.5%. It was the fastest quarterly rate of growth in over three years.\
Both figures met market expectations.
On Thursday in the euro zone, Germany is to release preliminary data on consumer inflation, in addition to data on the change in the number of people unemployed.
Japan is to produce official data on retail sales, the government measure of consumer spending, which accounts for the majority of overall economic activity.
In U.S. trading on Wednesday, EUR/JPY was up 0.81% at 138.58, up from a low of 137.30 and off a high of 138.79.
The pair sought to test support at 137.03, Monday's low, and resistance at 138.79, the earlier high.
The euro rose against the yen and other currencies after data showed that the forward-looking Gfk index of German consumer climate rose to a six-year high of 7.4 for December from 7.1 in November. Economists had expected an unchanged reading.
The euro saw additional support after German Chancellor Angela Merkel reached a deal to form a coalition government with the Social Democrats on Wednesday, following weeks of negotiations.
The yen, meanwhile, came under pressure after Bank of Japan board member Sayuri Shirai raised doubts over whether the bank’s 2% inflation target can be reached by 2015 because of downside risks to growth.
The euro, meanwhile, was down against the pound and down against the U.S. dollar, with EUR/GBP trading down 0.38% at 0.8338 and EUR/USD trading down 0.06% at 1.3565.
The pound saw support after data showed that a second estimate of U.K. third-quarter gross domestic product was unchanged at 0.8% quarter-on-quarter, while the annual rate of growth was also unchanged at 1.5%. It was the fastest quarterly rate of growth in over three years.\
Both figures met market expectations.
On Thursday in the euro zone, Germany is to release preliminary data on consumer inflation, in addition to data on the change in the number of people unemployed.
Japan is to produce official data on retail sales, the government measure of consumer spending, which accounts for the majority of overall economic activity.