Forex - EUR/JPY hits 4-day low as euro zone debt fears loom

Published 11/08/2010, 09:37 AM
EUR/USD
-
EUR/JPY
-
Investing.com – The euro was sharply lower against the yen on Monday, tumbling to a 4-day low, as renewed euro zone sovereign debt fears weighed on the single currency.

EUR/JPY hit 112.67 during European afternoon trade, the pair’s lowest since November 2; the pair subsequently consolidated at 113.16, tumbling 0.74%.

The pair was likely to find support at 111.86, the low of November 2 and resistance at 115.03, last Friday’s high.

Earlier Monday, European Union Commissioner Olli Rehn was to begin a 2-day visit to Ireland to discuss the country's plans for fiscal austerity. The country's main opposition party said on Sunday that it would not support next month's budget after the government announced a package of EUR 15 billion in spending cuts aimed at reducing the country’s budget deficit.

Also Monday, official data showed that Germany’s industrial production fell more-than-expected in September , dropping 0.8%, after rising by a revised 1.5% August. Analysts had expected industrial production to rise by 0.4% in September.

The euro was also down against the U.S. dollar, with EUR/USD shedding 0.65% to hit 1.3942.

Earlier in the day, the Bank of Japan said in its November economic report that the nation's economic recovery "seems to be pausing" although there are still "signs of a moderate recovery," adopting a slightly weaker tone than in the central bank's October report.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.