Investing.com – The euro rallied to an 11-month high against the broadly weaker yen on Wednesday, as investors geared up for a widely expected interest-rate hike by the European Central Bank later in the week.
EUR/JPY hit 121.96 during European afternoon trade, the pair’s highest since May 10, 2010; the pair subsequently consolidated at 121.87, jumping 0.98%.
The pair was likely to find support at 119.31, Tuesday’s low and resistance at 125.44, the high of May 4, 2010.
The yen was struggling, weighed by expectations that the Bank of Japan would lag other central banks in tightening policy measures while the disaster ravaged Japanese economy recovered.
Meanwhile, the ECB was widely expected to raise interest rates on Thursday for the first time since October 2008.
The single currency was also boosted after official data showed that German manufacturing orders rose significantly more-than-expected in February, climbing 2.4%, outstripping expectations for a 0.5% increase, boosted by robust domestic and foreign demand.
But the euro was lower against the Swiss franc, with EUR/CHF shedding 0.31% to hit 1.3118.
Earlier in the day, government data showed that Swiss consumer price inflation rose more-than-expected in March, raising expectations a euro zone rate increase would also give the Swiss National Bank room to tighten policy.
EUR/JPY hit 121.96 during European afternoon trade, the pair’s highest since May 10, 2010; the pair subsequently consolidated at 121.87, jumping 0.98%.
The pair was likely to find support at 119.31, Tuesday’s low and resistance at 125.44, the high of May 4, 2010.
The yen was struggling, weighed by expectations that the Bank of Japan would lag other central banks in tightening policy measures while the disaster ravaged Japanese economy recovered.
Meanwhile, the ECB was widely expected to raise interest rates on Thursday for the first time since October 2008.
The single currency was also boosted after official data showed that German manufacturing orders rose significantly more-than-expected in February, climbing 2.4%, outstripping expectations for a 0.5% increase, boosted by robust domestic and foreign demand.
But the euro was lower against the Swiss franc, with EUR/CHF shedding 0.31% to hit 1.3118.
Earlier in the day, government data showed that Swiss consumer price inflation rose more-than-expected in March, raising expectations a euro zone rate increase would also give the Swiss National Bank room to tighten policy.