Investing.com - The U.S. dollar inched lower against the safe-haven yen on Tuesday, amid fresh concerns over the global economic outlook after the International Monetary Fund cut its 2012 global growth forecast.
USD/JPY hit 78.24 during European morning trade, the session low; the pair subsequently consolidated at 78.32, dipping 0.03%.
The pair was likely to find support at 78.07, Monday’s low and resistance at 78.75, Monday’s high.
The IMF cut its forecast for global growth this year to 3.3% from 3.5% and warned that a failure by European and U.S. policymakers to tackle current problems could threaten what it called a “slow and bumpy” economic recovery.
Market sentiment had been boosted during the Asian session after China moved to inject liquidity into markets, fuelling speculation that it may announce more stimulus measures.
Investors remained cautious as uncertainty over how soon Spain may formally request a bailout lingered after euro zone finance ministers said Monday that Madrid did not need external financial aid yet.
The yen was higher against the euro, with EUR/JPY down 0.31% to 101.26.
Later in the day, German Chancellor Angela Merkel was to travel to Athens for talks with Greek political leaders, while finance ministers from the European Union were to hold a day of talks in Brussels.
Also Tuesday, European Central Bank President Mario Draghi was to testify to the European Parliament, and the International Monetary Fund and world central bank leaders were to continue talks in Tokyo.
USD/JPY hit 78.24 during European morning trade, the session low; the pair subsequently consolidated at 78.32, dipping 0.03%.
The pair was likely to find support at 78.07, Monday’s low and resistance at 78.75, Monday’s high.
The IMF cut its forecast for global growth this year to 3.3% from 3.5% and warned that a failure by European and U.S. policymakers to tackle current problems could threaten what it called a “slow and bumpy” economic recovery.
Market sentiment had been boosted during the Asian session after China moved to inject liquidity into markets, fuelling speculation that it may announce more stimulus measures.
Investors remained cautious as uncertainty over how soon Spain may formally request a bailout lingered after euro zone finance ministers said Monday that Madrid did not need external financial aid yet.
The yen was higher against the euro, with EUR/JPY down 0.31% to 101.26.
Later in the day, German Chancellor Angela Merkel was to travel to Athens for talks with Greek political leaders, while finance ministers from the European Union were to hold a day of talks in Brussels.
Also Tuesday, European Central Bank President Mario Draghi was to testify to the European Parliament, and the International Monetary Fund and world central bank leaders were to continue talks in Tokyo.