Forex - EUR/JPY gains on firming German business sentiment data

Published 12/19/2012, 03:17 PM
Updated 12/19/2012, 03:18 PM
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Forexpros - The euro firmed against the Japanese yen on Wednesday after German economic sentiment data beat expectations.

In U.S. trading on Tuesday, EUR/JPY hit 111.82, up 0.38% and up from a low of 111.33 and off a high of 112.49.

The pair sought to test support at 109.94, Monday's low, and resistance at 11249, the earlier high.

Businesses in Europe's largest economy are growing more and more confident in their economy these days

In Europe, the Ifo economic institute's German business climate index hit 102.4 for December, up from 101.4 in November and beating market forecasts for a 102.0 reading.

The data sent the single currency gaining against the safe-haven yen as investors took on risk.

The yen has come under pressure lately on expectations that incoming Japanese Prime Minister Shinzo Abe will push for more monetary easing at the Bank of Japan.

Abe recently called for higher inflation targets as part of his plans to see more aggressive monetary policy to spur the economy.

Elsewhere, the euro was up against the pound and up against the Canadian dollar, with EUR/GBP trading up 0.13% at 0.8149 and EUR/CAD trading up 0.31% at 1.3080.

Later Thursday, Germany is to release official data on producer price inflation.

The BoJ is to announce its benchmark interest rate. The rate announcement is to be accompanied by the bank’s rate statement, which contains important insights into current and future economic conditions from the bank’s perspective and will be followed by a press conference.




 

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