Forex - Weaker euro remains lower vs. yen

Published 03/12/2012, 10:46 AM
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Investing.com - The euro remained lower against the yen in quiet trade on Monday, as concerns over the implications of Greece’s debt swap with private creditors weighed and markets eyed the outcome of a meeting of euro zone finance ministers.

EUR/JPY hit 107.52 during U.S. morning trade, the pair’s lowest since Thursday; the pair subsequently consolidated at 107.88, shedding 0.31%.

The pair was likely to find support at 106.58, Thursday’s low and resistance at 108.63, Friday’s high and a seven day high.

The single currency remained under pressure after the International Swaps and Derivatives Association said Friday that Greece’s debt swap with private creditors constituted a “credit event”, which would activate credit-default swaps, designed to protect investors against losses on Greek sovereign debt.

Trade remained subdued as ongoing concerns over Greece overshadowed Friday’s strong U.S. employment data.

The Department of Labor said the U.S. economy added 227,000 jobs in February, beating expectations for a 210,000 gain. The unemployment rate held steady at a three year low of 8.3%.

The upbeat data continued to support the dollar as it dampened expectations for a fresh round of asset purchases by the Federal Reserve to help stimulate economic growth.

Earlier in the day, Japanese officials reiterated concerns over the strength of the yen, despite a recent weakening in the currency.

Prime Minister Yoshihiko Noda said that the yen was still "strong," while Finance Minister Jun Azumi reiterated warnings against any "excessively speculative movements."

Elsewhere, the yen was higher against the U.S. dollar, with USD/JPY shedding 0.24% to hit 82.28.

Later in the day, euro zone finance ministers were to hold talks in Brussels, to give their final approval to a EUR130 billion bailout for Greece.

The ministers were also likely to discuss Spain, after Prime Minister Mariano Rajoy announced earlier this month that the country would cut its deficit to 5.8% of gross domestic product, instead of the planned 4.4% in 2012.

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