Investing.com – The euro tumbled to its lowest level in 11-weeks against the yen on Tuesday, after a weekend agreement on a rescue package for Ireland failed to ease fears over sovereign debt contagion in the euro zone.
EUR/JPY hit 109.00 during European morning trade, the pair’s lowest since September 15; the pair subsequently consolidated at 109.06, plummeting 1.35%.
The pair was likely to find support at 107.79, the low of September 15 and resistance at 111.76, Monday’s high.
Earlier in the day, the cost of insuring Spanish and Italian sovereign debt against default rose to hit the highest levels since the launch of the single currency, reflecting a lack of confidence that the deal to bailout Ireland would contain the euro zone's debt crisis.
Also Tuesday, official data showed that the number of unemployed people in Germany declined less-than-expected in November while the rate of unemployment in the euro zone remained unchanged at 10.1% in October.
Meanwhile, preliminary data showed that consumer price inflation in the euro zone rose in line with expectations in November.
The euro was also down against the pound, with EUR/USD plunging 1.02% to hit 1.2986.
Also Tuesday, official data showed that Japan’s industrial production decreased less-than-expected in October, while the unemployment rate rose unexpectedly.
EUR/JPY hit 109.00 during European morning trade, the pair’s lowest since September 15; the pair subsequently consolidated at 109.06, plummeting 1.35%.
The pair was likely to find support at 107.79, the low of September 15 and resistance at 111.76, Monday’s high.
Earlier in the day, the cost of insuring Spanish and Italian sovereign debt against default rose to hit the highest levels since the launch of the single currency, reflecting a lack of confidence that the deal to bailout Ireland would contain the euro zone's debt crisis.
Also Tuesday, official data showed that the number of unemployed people in Germany declined less-than-expected in November while the rate of unemployment in the euro zone remained unchanged at 10.1% in October.
Meanwhile, preliminary data showed that consumer price inflation in the euro zone rose in line with expectations in November.
The euro was also down against the pound, with EUR/USD plunging 1.02% to hit 1.2986.
Also Tuesday, official data showed that Japan’s industrial production decreased less-than-expected in October, while the unemployment rate rose unexpectedly.