Investing.com - The U.S. dollar edged higher against the yen on Tuesday, as sustained fears over political deadlock in Greece and the country’s potential exit from the euro zone prompted investors to flock to safe haven assets.
USD/JPY hit 79.94 during early European trade, the daily high; the pair subsequently consolidated at 79.90, inching up 0.10%.
The pair was likely to find support at 79.59, the low of May 10 and resistance at 80.17, Monday’s high.
Sentiment found mild support earlier after preliminary data showed that Germany’s economy expanded more-than-expected in the first quarter, indicating that the euro zone’s largest economy is weathering the effects of the crisis in the region.
Germany’s gross domestic product grew by a seasonally adjusted 0.5% in the three months to March, above expectations for a growth of 0.1%.
But investors remained cautious as Greece’s President Karolos Papoulias was due to hold a fresh round of cross party talks aimed at forming a government later in the day, after a more than week-long political stalemate fuelled fears over the country’s ability to uphold its financial commitments and its possible exit from the euro zone.
Markets were also jittery after Moody’s Investors Service earlier announced widespread downgrades on Italy’s banking sector, amid concerns over limited access to market funding.
Elsewhere, the yen was lower against the euro with EUR/JPY rising 0.38%, to hit 102.77.
Later in the day, the U.S. was to publish official data on retail sales and consumer price inflation, as well as a report on manufacturing activity in New York.
USD/JPY hit 79.94 during early European trade, the daily high; the pair subsequently consolidated at 79.90, inching up 0.10%.
The pair was likely to find support at 79.59, the low of May 10 and resistance at 80.17, Monday’s high.
Sentiment found mild support earlier after preliminary data showed that Germany’s economy expanded more-than-expected in the first quarter, indicating that the euro zone’s largest economy is weathering the effects of the crisis in the region.
Germany’s gross domestic product grew by a seasonally adjusted 0.5% in the three months to March, above expectations for a growth of 0.1%.
But investors remained cautious as Greece’s President Karolos Papoulias was due to hold a fresh round of cross party talks aimed at forming a government later in the day, after a more than week-long political stalemate fuelled fears over the country’s ability to uphold its financial commitments and its possible exit from the euro zone.
Markets were also jittery after Moody’s Investors Service earlier announced widespread downgrades on Italy’s banking sector, amid concerns over limited access to market funding.
Elsewhere, the yen was lower against the euro with EUR/JPY rising 0.38%, to hit 102.77.
Later in the day, the U.S. was to publish official data on retail sales and consumer price inflation, as well as a report on manufacturing activity in New York.