Investing.com - The euro was trading close to a three-and-a-half month low against the yen on Thursday, as market sentiment remained under heavy pressure amid concerns over developments in Greece and their effects throughout the euro zone.
EUR/JPY hit 101.60 during European afternoon trade, the pair’s lowest since February 7; the pair subsequently consolidated at 101.84, declining 0.32%.
The pair was likely to find support at 100.96, the low of January 25 and resistance at 102.86, Wednesday’s high.
Sentiment was hit as shares of Spanish lender Bankia tumbled on the IBEX exchange amid reports that consumers have withdrawn more than EUR1 billion in funds since the bank was nationalized last week.
In addition, speculation swirled that rating’s agency Moody’s was preparing to announce widespread downgrades on Spain’s banking sector later in the session.
Spain’s Treasury successfully auctioned the full targeted amount of EUR2.5 billion at a government bond sale earlier, but the country’s borrowing costs rose sharply, pressured higher by worries over the health of the country’s banking sector.
Meanwhile, fears over the implications of a Greek exit from the euro zone continued as the country prepared for fresh elections next month, which could see anti-austerity parties take power.
Events in in the euro zone overshadowed U.S. data showing that the number of individuals filing for initial jobless benefits in the week ending May 12 held steady at 370,000, confounding expectations for a decline to 365,000.
Elsewhere, the yen was higher against the U.S. dollar with USD/JPY shedding 0.17%, to hit 80.20.
Also Thursday, preliminary data showed that Japan’s gross domestic product expanded 1.0% in the three months to March, exceeding expectations for a 0.9% increase, following a flat reading in the previous quarter.
Later in the day, the U.S. was to produce a report on manufacturing activity in the Philadelphia area.
EUR/JPY hit 101.60 during European afternoon trade, the pair’s lowest since February 7; the pair subsequently consolidated at 101.84, declining 0.32%.
The pair was likely to find support at 100.96, the low of January 25 and resistance at 102.86, Wednesday’s high.
Sentiment was hit as shares of Spanish lender Bankia tumbled on the IBEX exchange amid reports that consumers have withdrawn more than EUR1 billion in funds since the bank was nationalized last week.
In addition, speculation swirled that rating’s agency Moody’s was preparing to announce widespread downgrades on Spain’s banking sector later in the session.
Spain’s Treasury successfully auctioned the full targeted amount of EUR2.5 billion at a government bond sale earlier, but the country’s borrowing costs rose sharply, pressured higher by worries over the health of the country’s banking sector.
Meanwhile, fears over the implications of a Greek exit from the euro zone continued as the country prepared for fresh elections next month, which could see anti-austerity parties take power.
Events in in the euro zone overshadowed U.S. data showing that the number of individuals filing for initial jobless benefits in the week ending May 12 held steady at 370,000, confounding expectations for a decline to 365,000.
Elsewhere, the yen was higher against the U.S. dollar with USD/JPY shedding 0.17%, to hit 80.20.
Also Thursday, preliminary data showed that Japan’s gross domestic product expanded 1.0% in the three months to March, exceeding expectations for a 0.9% increase, following a flat reading in the previous quarter.
Later in the day, the U.S. was to produce a report on manufacturing activity in the Philadelphia area.