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Forex - Euro reverses losses against yen, Swiss franc after U.S. data

Published 01/05/2011, 08:46 AM
EUR/JPY
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Investing.com – The euro erased losses against the yen and the Swiss franc on Wednesday, after market sentiment was boosted by industry data showing that U.S. non-farm payrolls jumped in December.

EUR/JPY clawed up from 108.51, the pair’s lowest since Monday, to hit 109.25 during European afternoon trade, gaining 0.08%.

The pair was likely to find support at 107.78, Monday’s low and resistance at 109.6, the high of December 23.

In a report, payroll processing firm ADP said non-farm private employment rose by a seasonally adjusted 297K in December, after rising by a revised 92K the previous month.

Analysts had expected non-farm private sector employment to increase by 100K in December.

Earlier in the day, fresh concerns over Europe’s sovereign debt surfaced, following reports that the Swiss National Bank excluded Irish government bonds from being used as eligible collateral.

Meanwhile, Portugal sold EUR500 million of six-month treasury bills at a well subscribed auction but the yield the government was forced to pay rose sharply.

The euro was also erased losses against the Swiss franc, rising 0.13% to hit 1.2637.

Also Wednesday, official data showed that industrial new orders in the euro zone rose slightly less-than-expected in October, climbing 1.4%, less than the consensus forecast of a 1.6% increase.

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