Investing.com – The euro was up against the yen on Tuesday, surging to a 6-day high after a surprise interest rate increase by Australia’s central bank saw risk appetite sharpen.
EUR/JPY hit 113.48 during European afternoon trade, the pair’s highest since October 25; the pair subsequently consolidated at 113.22, jumping 1.23%.
The pair was likely to find support at 111.76, Monday’s low and resistance at 113.77, the high of October 25.
Earlier in the day, the Reserve Bank of Australia unexpectedly raised its Official Cash Rate by a quarter of a percentage point to 4.75% amid concern that stronger growth will cause inflation to accelerate. It was the bank’s first rate increase in six months.
Also boosting risk appetite were expectations that the Federal Reserve was only a day away from announcing fresh monetary easing measures to support the U.S. economic recovery.
The euro was also up against the U.S. dollar, with EUR/USD soaring 0.90% to hit 1.4019.
Later in the day, Federal Reserve policy makers were to begin their 2-day November policy meeting, which was widely expected to result in the unveiling of fresh monetary easing. Also Tuesday, U.S. mid-term elections were due to be held.
EUR/JPY hit 113.48 during European afternoon trade, the pair’s highest since October 25; the pair subsequently consolidated at 113.22, jumping 1.23%.
The pair was likely to find support at 111.76, Monday’s low and resistance at 113.77, the high of October 25.
Earlier in the day, the Reserve Bank of Australia unexpectedly raised its Official Cash Rate by a quarter of a percentage point to 4.75% amid concern that stronger growth will cause inflation to accelerate. It was the bank’s first rate increase in six months.
Also boosting risk appetite were expectations that the Federal Reserve was only a day away from announcing fresh monetary easing measures to support the U.S. economic recovery.
The euro was also up against the U.S. dollar, with EUR/USD soaring 0.90% to hit 1.4019.
Later in the day, Federal Reserve policy makers were to begin their 2-day November policy meeting, which was widely expected to result in the unveiling of fresh monetary easing. Also Tuesday, U.S. mid-term elections were due to be held.