Investing.com – The euro trimmed losses against the yen on Thursday, after the president of the European Central Bank, Jean-Claude Trichet, said the bank will continue to offer special longer-term liquidity into 2011.
EUR/JPY clawed up from 109.97, the daily low to hit 110.58 during European afternoon trade, shedding 0.02%.
The pair was likely to find support at 108.39, Wednesday’s low and resistance at 111.76, the high of November 29.
The extra liquidity measures were due to be phased out early next year, so the decision has eased pressure in euro zone debt markets.
The central bank president also said that the banks bond purchase program "is ongoing." Analysts had expected he might announce a sharp increase in its size. So far, the ECB has purchased around EUR60 billion in euro zone public debt securities.
Mr. Trichet declined to comment on the size of recent or prospective bond purchases but noted that they are all sterilized, meaning the ECB isn't creating money to fund them.
Earlier Thursday, the ECB left its benchmark interest rate unchanged at 1%, in line with expections. Mr. Trichet said that the rate was "appropriate" given "contained" inflationary pressures.
The euro was also down against the U.S. dollar, with EUR/USD shedding 0.14% to hit 1.3221.
Also Thursday, official data showed that Japanese capital spending rose 4.8% in the second quarter, increasing for the first time in over three years.
EUR/JPY clawed up from 109.97, the daily low to hit 110.58 during European afternoon trade, shedding 0.02%.
The pair was likely to find support at 108.39, Wednesday’s low and resistance at 111.76, the high of November 29.
The extra liquidity measures were due to be phased out early next year, so the decision has eased pressure in euro zone debt markets.
The central bank president also said that the banks bond purchase program "is ongoing." Analysts had expected he might announce a sharp increase in its size. So far, the ECB has purchased around EUR60 billion in euro zone public debt securities.
Mr. Trichet declined to comment on the size of recent or prospective bond purchases but noted that they are all sterilized, meaning the ECB isn't creating money to fund them.
Earlier Thursday, the ECB left its benchmark interest rate unchanged at 1%, in line with expections. Mr. Trichet said that the rate was "appropriate" given "contained" inflationary pressures.
The euro was also down against the U.S. dollar, with EUR/USD shedding 0.14% to hit 1.3221.
Also Thursday, official data showed that Japanese capital spending rose 4.8% in the second quarter, increasing for the first time in over three years.