Investing.com - The euro advanced to a fresh daily high against the yen on Thursday, after European Central Bank President Mario Draghi said that there are “tentative” signs that the economy in the euro zone is stabilizing.
EUR/JPY hit 98.24 during European afternoon trade, the session high; the pair subsequently consolidated at 98.13, gaining 0.49%.
The pair was likely to find support at 97.26, Monday’s low and an 11-year low and resistance at 98.84, the high of January 6.
Speaking at the central bank’s post-policy meeting press conference, Draghi said the ECB saw "tentative signs of stabilization of activity at low levels" although the economy still faced "substantial downside risks."
The comments came after the ECB left the benchmark interest rate unchanged at 1.0%.
Draghi also said the central bank’s recent refinancing operation has made a substantial contribution to improving the funding situation for banks in the euro zone and averting a liquidity crunch.
Sentiment on the single currency was boosted earlier after Spain sold twice the maximum targeted amount of EUR5 billion at auction, selling EUR9.98 billion in bonds maturing in 2015 and 2016, including a new benchmark bond at lower yields than in similar offerings in December.
An auction of Italian short-term government debt also met with solid investor demand at sharply lower yields.
Earlier in the day, the Bank of Japan’s chief economist said that the country’s economy will see flat growth for the time being before resuming a moderate recovery later this year as the euro zone’s debt crisis and an overseas slowdown weigh on exports.
The euro was also higher against the U.S. dollar, with EUR/USD rising 0.55% to hit 1.2776.
Also Thursday, official data showed that the number of people who filed for unemployment assistance in the U.S. last week unexpectedly rose to 399,000 from 375,000 the previous week.
A separate report showed that U.S. retail sales rose less-than-expected in December, while core retail sales declined unexpectedly.
EUR/JPY hit 98.24 during European afternoon trade, the session high; the pair subsequently consolidated at 98.13, gaining 0.49%.
The pair was likely to find support at 97.26, Monday’s low and an 11-year low and resistance at 98.84, the high of January 6.
Speaking at the central bank’s post-policy meeting press conference, Draghi said the ECB saw "tentative signs of stabilization of activity at low levels" although the economy still faced "substantial downside risks."
The comments came after the ECB left the benchmark interest rate unchanged at 1.0%.
Draghi also said the central bank’s recent refinancing operation has made a substantial contribution to improving the funding situation for banks in the euro zone and averting a liquidity crunch.
Sentiment on the single currency was boosted earlier after Spain sold twice the maximum targeted amount of EUR5 billion at auction, selling EUR9.98 billion in bonds maturing in 2015 and 2016, including a new benchmark bond at lower yields than in similar offerings in December.
An auction of Italian short-term government debt also met with solid investor demand at sharply lower yields.
Earlier in the day, the Bank of Japan’s chief economist said that the country’s economy will see flat growth for the time being before resuming a moderate recovery later this year as the euro zone’s debt crisis and an overseas slowdown weigh on exports.
The euro was also higher against the U.S. dollar, with EUR/USD rising 0.55% to hit 1.2776.
Also Thursday, official data showed that the number of people who filed for unemployment assistance in the U.S. last week unexpectedly rose to 399,000 from 375,000 the previous week.
A separate report showed that U.S. retail sales rose less-than-expected in December, while core retail sales declined unexpectedly.