Investing.com - The euro tumbled to a three-week low against the yen on Wednesday, as disappointing economic data from the euro zone continued to weighed while fresh signs of U.S. economic recovery further dampened easing expectations from the Federal Reserve.
EUR/JPY hit 108.07 during European afternoon trade, the pair’s lowest since March 13; the pair subsequently consolidated at 107.99, plummeting 1.44%.
The pair was likely to find support at 107.50, the low of March 12 and resistance at 109.68, the day’s high.
Sentiment on the euro was hit earlier as the cost of insuring Spain’s debt against default climbed earlier after the country auctioned EUR2.59 billon of government bonds, short of the maximum targeted amount of EUR3.5 billion.
The auction came after data confirmed that the euro zone service sector contracted for the sixth time in seven months in March, increasing the likelihood that the economy has entered a technical recession.
Also Wednesday, the European Central Bank left its benchmark interest unchanged at 1.00%, in a widely expected decision.
Following the decision, ECB President Mario Draghi said that growth has “stabilized at low levels” and that a moderate recovery is expected in course of the year.
Meanwhile, a report showed that euro zone retail sales fell by 0.1% in February, against expectations for a 0.1% increase and were 2.1% lower year-on-year.
Earlier in the day, official data showed that German factory orders rose 0.3% in February, below expectations for a 1.2% increase, renewing concerns over the economic outlook for the bloc’s largest economy.
In the U.S., payroll processing firm ADP said U.S. non-farm private employment rose by a seasonally adjusted 209,000 in March, beating expectations for an increase of 200,000.
The yen was also higher against the U.S. dollar with USD/JPY shedding 0.57%, to hit 82.33.
Later in the day, the U.S. was to produce a report by the Institute of Supply Management on service sector activity and government data on crude oil stockpiles.
EUR/JPY hit 108.07 during European afternoon trade, the pair’s lowest since March 13; the pair subsequently consolidated at 107.99, plummeting 1.44%.
The pair was likely to find support at 107.50, the low of March 12 and resistance at 109.68, the day’s high.
Sentiment on the euro was hit earlier as the cost of insuring Spain’s debt against default climbed earlier after the country auctioned EUR2.59 billon of government bonds, short of the maximum targeted amount of EUR3.5 billion.
The auction came after data confirmed that the euro zone service sector contracted for the sixth time in seven months in March, increasing the likelihood that the economy has entered a technical recession.
Also Wednesday, the European Central Bank left its benchmark interest unchanged at 1.00%, in a widely expected decision.
Following the decision, ECB President Mario Draghi said that growth has “stabilized at low levels” and that a moderate recovery is expected in course of the year.
Meanwhile, a report showed that euro zone retail sales fell by 0.1% in February, against expectations for a 0.1% increase and were 2.1% lower year-on-year.
Earlier in the day, official data showed that German factory orders rose 0.3% in February, below expectations for a 1.2% increase, renewing concerns over the economic outlook for the bloc’s largest economy.
In the U.S., payroll processing firm ADP said U.S. non-farm private employment rose by a seasonally adjusted 209,000 in March, beating expectations for an increase of 200,000.
The yen was also higher against the U.S. dollar with USD/JPY shedding 0.57%, to hit 82.33.
Later in the day, the U.S. was to produce a report by the Institute of Supply Management on service sector activity and government data on crude oil stockpiles.