Investing.com - The euro remained lower against the yen on Thursday, hovering close to an 11-year trough as sustained concerns over Europe’s banking sector overshadowed positive U.S. employment data.
EUR/JPY hit 98.49 during European afternoon trade, a decade low; the pair subsequently consolidated at 98.71, shedding 0.58%.
The pair was likely to find support at 98.00 and resistance at 99.34, the day’s high.
Data showed that U.S. non-farm private employment increased more-than-expected in December, posting the largest monthly gain since December 2010.
In a separate report, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits last week fell more than-expected, declining to 372,000, beating expectations for a fall to 375,000.
But the single currency remained under pressure after a report on Wednesday showed that that overnight deposits at the European Central Bank reached an all-time high this week, indicating that European banks remain unwilling to lend to each other.
Sentiment was also weak after data showed that industrial new orders in the euro zone rose less-than-expected in October, advancing 1.8%, disappointing expectations for a 2.5% gain.
Meanwhile, France sold EUR4.02 billion of 10-year bonds at an average yield of 3.29%, compared with 3.18% at a similar auction last month. Bids exceeded the amount sold 1.6 times, down from a bid-to-cover ratio of 3.1 in December.
France is seen as vulnerable to losing its triple-A credit rating in the coming weeks, after it was put on negative watch by ratings agencies Standard & Poor’s and Fitch’s in December, amid concerns over the handling of the financial crisis in the euro zone.
Elsewhere, the yen was sharply lower against the U.S. dollar with USD/JPY climbing 0.38%, to hit 77.02.
Also Thursday, a senior Japanese government official said Japan will continue to closely monitor moves in the foreign exchange market and act appropriately after the U.S. criticized last year’s currency market interventions by Japan.
Later in the day, the Institute of Supply Management was to release a report on U.S. service sector activity.
EUR/JPY hit 98.49 during European afternoon trade, a decade low; the pair subsequently consolidated at 98.71, shedding 0.58%.
The pair was likely to find support at 98.00 and resistance at 99.34, the day’s high.
Data showed that U.S. non-farm private employment increased more-than-expected in December, posting the largest monthly gain since December 2010.
In a separate report, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits last week fell more than-expected, declining to 372,000, beating expectations for a fall to 375,000.
But the single currency remained under pressure after a report on Wednesday showed that that overnight deposits at the European Central Bank reached an all-time high this week, indicating that European banks remain unwilling to lend to each other.
Sentiment was also weak after data showed that industrial new orders in the euro zone rose less-than-expected in October, advancing 1.8%, disappointing expectations for a 2.5% gain.
Meanwhile, France sold EUR4.02 billion of 10-year bonds at an average yield of 3.29%, compared with 3.18% at a similar auction last month. Bids exceeded the amount sold 1.6 times, down from a bid-to-cover ratio of 3.1 in December.
France is seen as vulnerable to losing its triple-A credit rating in the coming weeks, after it was put on negative watch by ratings agencies Standard & Poor’s and Fitch’s in December, amid concerns over the handling of the financial crisis in the euro zone.
Elsewhere, the yen was sharply lower against the U.S. dollar with USD/JPY climbing 0.38%, to hit 77.02.
Also Thursday, a senior Japanese government official said Japan will continue to closely monitor moves in the foreign exchange market and act appropriately after the U.S. criticized last year’s currency market interventions by Japan.
Later in the day, the Institute of Supply Management was to release a report on U.S. service sector activity.