Investing.com - The euro was lower against the yen on Monday, as uncertainty over new measures to tackle the euro zone’s debt crisis and downbeat economic reports weighed on demand for the single currency.
EUR/JPY hit 100.34 during European afternoon trade, the daily low; the pair subsequently consolidated at 100.46, shedding 0.58%.
The pair was likely to find support at 99.81, the low of June 20 and resistance at 101.62, the high of June 21.
The euro broadly strengthened on Friday, after European leaders agreed to use the euro zone’s bailout funds to support struggling banks directly, without adding to national debt, and to purchase government debt in order to keep borrowing costs down.
Leaders also agreed to set up a joint banking supervisory body for the euro area.
But the single currency came under pressure amid questions over the long-term effectiveness of the measures in addressing the root causes of the euro zone’s debt crisis and uncertainty over how and when the measures can be implemented.
Earlier Monday, Finland and the Netherland’s reiterated their opposition to using euro zone bailout funds to purchase government bonds.
Meanwhile, concerns over the outlook for the euro zone economy re-emerged after official data showed that the unemployment rate in the bloc rose to a record high 11.1% in May, up from 11.0% in April.
A separate report showed that the final reading of the euro zone manufacturing purchasing managers’ index came in at 45.1 in June, above the preliminary estimate of 44.8 and holding steady at its lowest level since June 2009.
The yen was steady against the U.S. dollar with USD/JPY easing 0.06%, to hit 79.74.
Also Monday, the Tankan manufacturing index for Japan improved unexpectedly in the second quarter, ticking up to minus 1 from a reading of minus 4 the previous quarter, while the non-manufacturing index rose to 8 from a reading of 4, beating expectations for a rise to 6.
Later in the day, the Institute for Supply Management was to release a report on activity in the U.S. manufacturing sector.
EUR/JPY hit 100.34 during European afternoon trade, the daily low; the pair subsequently consolidated at 100.46, shedding 0.58%.
The pair was likely to find support at 99.81, the low of June 20 and resistance at 101.62, the high of June 21.
The euro broadly strengthened on Friday, after European leaders agreed to use the euro zone’s bailout funds to support struggling banks directly, without adding to national debt, and to purchase government debt in order to keep borrowing costs down.
Leaders also agreed to set up a joint banking supervisory body for the euro area.
But the single currency came under pressure amid questions over the long-term effectiveness of the measures in addressing the root causes of the euro zone’s debt crisis and uncertainty over how and when the measures can be implemented.
Earlier Monday, Finland and the Netherland’s reiterated their opposition to using euro zone bailout funds to purchase government bonds.
Meanwhile, concerns over the outlook for the euro zone economy re-emerged after official data showed that the unemployment rate in the bloc rose to a record high 11.1% in May, up from 11.0% in April.
A separate report showed that the final reading of the euro zone manufacturing purchasing managers’ index came in at 45.1 in June, above the preliminary estimate of 44.8 and holding steady at its lowest level since June 2009.
The yen was steady against the U.S. dollar with USD/JPY easing 0.06%, to hit 79.74.
Also Monday, the Tankan manufacturing index for Japan improved unexpectedly in the second quarter, ticking up to minus 1 from a reading of minus 4 the previous quarter, while the non-manufacturing index rose to 8 from a reading of 4, beating expectations for a rise to 6.
Later in the day, the Institute for Supply Management was to release a report on activity in the U.S. manufacturing sector.