Forex - USD/JPY lower ahead of French, Spanish bond sales

Published 01/19/2012, 03:21 AM
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Investing.com - The U.S. dollar was lower against the yen on Thursday, as investors awaited the results of French and Spanish government bond auctions later in the day amid ongoing concerns over the euro zone’s debt crisis.

USD/JPY hit 76.72 during late Asian trade, the daily low; the pair subsequently consolidated at 76.76, retreating 0.08%.

The pair was likely to find support at 76.64, the low of January 18 and resistance at 76.90, the high of January 10.

France was preparing to raise as much as EUR9.5 billion euros in its first sale of medium and long-term debt after Standard & Poor’s downgraded its triple A rating.

Spain, whose rating was lowered by two levels to A, was set to offer as much as EUR4.5 billion of bonds later Thursday.

Earlier in the day, European Central Bank policymaker Joerg Asmussen warned that the central bank cannot use its bond-buying program to prop up troubled euro zone states forever, adding that governments bear the main responsibility for fighting the debt crisis.

Elsewhere, talks between Greek Prime Minister Lucas Papademos and the country’s creditors resumed on Wednesday, after breaking down last week amid disagreements over how much money investors will lose by swapping their bonds.

The yen was lower against the euro with EUR/JPY shedding 0.12%, to hit 98.68.

Later Thursday, the U.S. was to publish official data on building reports and housing starts as well as a report on consumer price inflation. The country was also to release government data on unemployment claims and a separate report on manufacturing activity in the Philadelphia area.  


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