Forex - EUR/JPY falls on Greek aid setback

Published 02/10/2012, 03:20 PM
Updated 02/10/2012, 03:25 PM
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Investing.com - The euro fell against the yen on Friday after E.U. officials said Greece didn't qualify for bailout money by failing to accept tough austerity measures in exchange for aid.

In U.S. trading on Friday, EUR/JPY hit 102.19, down 0.97%, up slightly from a session low of 102.16  and off from a high of 103.23.

The pair was likely to find support at 99.86, Monday’s low, and resistance at 103.29, Thursday’s high.

Greek officials recently signaled willingness to accept austerity measures needed to tap a EUR130 billion bailout package.
 
However, multilateral institutions arranging the bailout fund, including the European Union, the European Central Bank and the International Monetary Fund, found that Greece still failed to meet spending targets and rejected the country's appeal for aid.

Reports emerged that Greece’s game plan for austerity didn't tackle deficits enough, leaving its debt around 136% of gross domestic product by 2020, which lenders deemed unacceptable.

The euro, meanwhile, was down against both the pound and the dollar, with EUR/GBP losing 0.39% to 0.8367 and EUR/USD falling 0.90% at 1.3167

On Sunday, Japanese gross domestic product figures are due out, while Australia will release home loan data.
 
On Monday, French inflation figures will publish, as will Australian business confidence figures.
 
Markets will keep an eye on a German bond auction on Monday to gauge how immune Europe's largest economy is to the Greek debt crisis.
 
Also on Monday, the Royal Institution of Chartered Surveyors (RICS) House Price Balance will shed light on U.K. housing prices.





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