Forex - EUR/JPY rebounds as hopes for Greek bailout rekindle

Published 11/13/2012, 09:35 PM
Updated 11/13/2012, 09:36 PM
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Investing.com - The euro rose against the yen on Wednesday after bargain hunters snapped up nicely priced positions on sentiment Greece may see bailout funding resume flowing into the country soon.

In Asian trading on Wednesday, EUR/JPY hit 101.17, up 0.33% and up from a low of 100.89 and off a high of 101.19.

The pair sought to test support at 100.88, Monday's low, and resistance at 101.25, Tuesday's high.

The single currency caught the attention of bottom fishers after German newspaper Bild reported that Greece could receive EUR44 billion in various financial aid packages bundled together in one lump sum, citing German government sources.

Greece recently approved a new budget and a string of austerity measures to appease creditors, though eurozone policymakers have yet to disburse aid, which pushed the pair downwards in recent sessions.

Eurozone policymakers are scheduled to meet again to discuss Greece's finances on Nov. 20, with a EUR31.5 billion tranche of aid pending approval.

Meanwhile, Greece placed EUR4.06 billion in short-term government debt earlier, money that will help Athens to repay EUR5 billion in debt maturing on Friday, and hopes began to build that policymakers will free up the money for Athens throughout the session.

Elsewhere in Europe, the ZEW Centre for Economic Research reported earlier that its index of German economic sentiment fell to -15.7 in November from October’s reading of -11.5.

Analysts had expected the index come in at -9.8 this month.

The report mentioned that "recessionary developments" in the eurozone should dampen German growth in the next six months, though investors felt the euro was ripe for bottom fishing.

Elsewhere, the euro was up against the pound and up against the Canadian dollar, with EUR/GBP trading up 0.08% at 0.8010 and EUR/CAD trading up 0.09% at 1.2743.

Later Wednesday, the eurozone will release official data on industrial production, a leading indicator of economic health.

The U.S. will unveil data on retail sales, producer price inflation and business inventories.

In addition, the Federal Reserve is to publish the minutes of its most recent policy-setting meeting.








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