Investing.com – The euro tumbled against the yen on Tuesday, erasing all of Monday’s gains after Athens called for a vote on Greece's bailout program, sparking fresh uncertainty over the debt crisis in the euro zone.
EUR/JPY hit 106.50 during U.S. morning trade, the pair’s lowest since October 27; the pair subsequently consolidated at 106.95, tumbling 1.25%.
The pair was likely to find support at 105.66, the low of October 27 and resistance at 109.23, the days high.
Sentiment on the single currency was hit after Prime Minister George Papandreou announced a surprise referendum on Greece's bailout program, which was agreed on last Thursday.
If Greece rejects the deal it could move the country closer to a sovereign default, increasing the risk of contagion in global financial markets.
Speaking in the wake of the shock announcement, Eurogroup Chairman Jean-Claude Juncker said it had piled "great nervousness and insecurity" onto an already very insecure situation for the euro zone economy.
The euro rallied to a nine-week high against the yen on Monday, after Japan intervened in the foreign exchange market to curb the appreciation of the yen after the currency surged to a record against the U.S. dollar in early trade.
In the U.S., industry data released earlier showed that the pace of manufacturing activity slowed unexpectedly in October.
The Institute for Supply Management said its index of purchasing managers dipped to 50.8 from 51.6 the previous month, confounding expectations for a gain to 52.1.
The euro was also sharply lower against the dollar, with EUR/USD plunging 1.41% to hit 1.3661.
Also Tuesday, government data showed that Chinese manufacturing activity fell to its lowest level since February 2009 in October, while the Reserve Bank of Australia's decision to cut interest rates for the first time in more than two years underlined weakness in the global economy.
EUR/JPY hit 106.50 during U.S. morning trade, the pair’s lowest since October 27; the pair subsequently consolidated at 106.95, tumbling 1.25%.
The pair was likely to find support at 105.66, the low of October 27 and resistance at 109.23, the days high.
Sentiment on the single currency was hit after Prime Minister George Papandreou announced a surprise referendum on Greece's bailout program, which was agreed on last Thursday.
If Greece rejects the deal it could move the country closer to a sovereign default, increasing the risk of contagion in global financial markets.
Speaking in the wake of the shock announcement, Eurogroup Chairman Jean-Claude Juncker said it had piled "great nervousness and insecurity" onto an already very insecure situation for the euro zone economy.
The euro rallied to a nine-week high against the yen on Monday, after Japan intervened in the foreign exchange market to curb the appreciation of the yen after the currency surged to a record against the U.S. dollar in early trade.
In the U.S., industry data released earlier showed that the pace of manufacturing activity slowed unexpectedly in October.
The Institute for Supply Management said its index of purchasing managers dipped to 50.8 from 51.6 the previous month, confounding expectations for a gain to 52.1.
The euro was also sharply lower against the dollar, with EUR/USD plunging 1.41% to hit 1.3661.
Also Tuesday, government data showed that Chinese manufacturing activity fell to its lowest level since February 2009 in October, while the Reserve Bank of Australia's decision to cut interest rates for the first time in more than two years underlined weakness in the global economy.