Investing.com - The euro rose against the yen on Tuesday, as growing hopes of stimulus measures by world central banks lent some support to the single currency, after a string of downbeat data sparked fresh concerns over the outlook for global economic growth.
EUR/JPY hit 100.72 during European afternoon trade, the daily high; the pair subsequently consolidated at 100.39, rising 0.40%.
The pair was likely to find support at 99.28, the low of June 13 and resistance at 101.28, Monday’s high.
On Monday, a report showed that the U.S. manufacturing sector had contracted for the first time since July 2009 in June.
The weak data fuelled speculation that the Federal Reserve may implement a third round of quantitative easing to support economic growth, which has been hit by the ongoing debt crisis in the euro zone.
Investors were also eyeing the outcome of the European Central Bank’s policy meeting on Thursday, amid growing expectations for a rate cut to help bolster growth in the bloc.
Data on Monday showed that the unemployment rate in the region rose to a record in May, while the manufacturing sector remained firmly in contraction territory in June.
The gloomy reports came after government data showed that Chinese manufacturing activity grew at its slowest pace in seven months in June, as new export orders tumbled to lows hit in March 2009.
Market players were also hoping for further easing measures from Beijing to boost growth in the world’s second largest economy.
Elsewhere, the yen was lower against the U.S. dollar with USD/JPY adding 0.42%, to hit 79.85.
Also Tuesday, government data showed that average cash earnings in Japan fell unexpectedly in May, declining 0.8% after a 0.2% rise the previous month. Analysts had expected average cash earnings to rise 0.6% in May.
Later in the day, the U.S. was to release official data on factory orders.
EUR/JPY hit 100.72 during European afternoon trade, the daily high; the pair subsequently consolidated at 100.39, rising 0.40%.
The pair was likely to find support at 99.28, the low of June 13 and resistance at 101.28, Monday’s high.
On Monday, a report showed that the U.S. manufacturing sector had contracted for the first time since July 2009 in June.
The weak data fuelled speculation that the Federal Reserve may implement a third round of quantitative easing to support economic growth, which has been hit by the ongoing debt crisis in the euro zone.
Investors were also eyeing the outcome of the European Central Bank’s policy meeting on Thursday, amid growing expectations for a rate cut to help bolster growth in the bloc.
Data on Monday showed that the unemployment rate in the region rose to a record in May, while the manufacturing sector remained firmly in contraction territory in June.
The gloomy reports came after government data showed that Chinese manufacturing activity grew at its slowest pace in seven months in June, as new export orders tumbled to lows hit in March 2009.
Market players were also hoping for further easing measures from Beijing to boost growth in the world’s second largest economy.
Elsewhere, the yen was lower against the U.S. dollar with USD/JPY adding 0.42%, to hit 79.85.
Also Tuesday, government data showed that average cash earnings in Japan fell unexpectedly in May, declining 0.8% after a 0.2% rise the previous month. Analysts had expected average cash earnings to rise 0.6% in May.
Later in the day, the U.S. was to release official data on factory orders.