Forex - EUR/JPY sharply lower amid Greek bailout deadlock

Published 02/06/2012, 08:45 AM
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Investing.com - The euro was sharply lower against the yen on Monday, as the lack of progress in talks between Greece and its international creditors on the terms of a second bailout weighed on the single currency.

EUR/JPY hit 99.86 on Monday, the pair’s lowest since February 2; the pair subsequently consolidated at 99.99, declining 0.79%.

The pair was likely to find support at 99.40, the low of January 20 and resistance at 100.69, the high of February 1.

Greek officials indicated earlier that a meeting between Greek Prime Minister Lucas Papademos and coalition party leaders was likely to take place later in the day, amid hopes that an agreement on a EUR130 billion bailout package would be finalized.

Meanwhile, a spokesman for the European Commission said that Greece has gone beyond the deadline for finalizing talks on a second bailout and warned that Athens urgently needs to take a decision.

The euro found brief support earlier after official data showed that German factory orders rose more-than-expected in December, on the back of increased demand from outside the euro zone, easing concerns over a slowdown in the region’s largest economy.

The single currency was also down against the U.S. dollar with EUR/USD retreating 0.86%, to hit 1.3044.

Also Monday, Sentix said its investor confidence index for the euro zone improved more-than-expected in February, advancing to minus 11.1 from minus 21.1 the previous month.

Analysts had expected a reading of minus 14.8 in February.


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