Forex - EUR/JPY hits 4-day high as risk appetite sharpens

Published 10/14/2010, 10:34 AM
EUR/USD
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EUR/JPY
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Investing.com – The euro was up against the yen on Thursday, rising to hit a 4-day high as risk appetite sharpened following the release of mixed U.S. data on initial jobless claims and inflation.

EUR/JPY hit 114.78 during European afternoon trade, the pair’s highest since October 8; the pair subsequently consolidated at 114.69, gaining 0.46%.

The pair was likely to find support at 113.76, Wednesday’s low and resistance at 115.66, the high of October 7.

Earlier in the day, official data showed that while U.S. initial jobless claims rose more-than-expected last week, producer price inflation rose-more-than expected in August.

In a report, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending October 9 rose to a seasonally adjusted 462K, after falling to a revised 449K in the preceding week. Analysts had expected claims to increase to 449K in the week ending October 9.

Meanwhile, a seperate report by the Bureau of Labor Statistics said that PPI rose by a seasonally adjusted 0.4% in September, after rising by 0.4% in August. Analysts had expected PPI to increase by 0.2% in September.

The euro was also up against the U.S. dollar, with EUR/USD gaining 0.82% to hit 1.4075.

Earlier Thursday, Singapore’s central bank unexpectedly tightened monetary policy, broadening the range of the Singapore dollar's trading band. The move increased pressure on the U.S. dollar which has weakened amid expectations that the Federal Reserve could begin to implement further monetary easing as soon as next month.

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