Investing.com - The euro was trading at 33-month highs against
the yen on Thursday, ahead of remarks by European Central Bank
President Mario Draghi later in the day, as expectations for more
easing continued to pin down the yen.
EUR/JPY hit 127.45 during European morning trade, the session high;
the pair subsequently consolidated at 127.38, gaining 0.61%.
The pair was likely to find support at 126.02, the session low and
resistance at 129.50.
Demand for the euro was underpinned by optimism that the debt
crisis in the euro zone has turned a corner after recent economic
data pointed to signs of a recovery in the region.
Market participants remained cautious ahead of remarks by President
Draghi at the bank's post-policy meeting press conference, amid
wariness that he could express concerns over the impact of the
stronger euro on the economic recovery.
The ECB was widely expected to leave interest rates unchanged at
0.75% on Thursday.
The yen remained broadly weaker as expectations for more aggressive
monetary easing weighed.
Earlier this week, BoJ Governor Masaaki Shirakawa said he was
stepping down three weeks before the conclusion of his five year
term on April 8, along with his two deputy governors.
The move is likely to push forward a transition towards more
aggressive monetary easing, amid ongoing pressure from Prime
Minister Shinzo Abe to step up measures to combat deflation.
Prime Minister Abe is expected to nominate a new governor later
Elsewhere, the euro was higher against the dollar, with EUR/USD up
0.34% to 1.3565 and was slightly lower against the pound, with
EUR/GBP dipping 0.04% to 0.8634.
Sentiment on sterling remained subdued as incoming Bank of England
Governor Mark Carney testified before a U.K. parliamentary
committee in London. The BoE was to announce its benchmark interest
rate later in the day.
Earlier Thursday, official data showed that manufacturing
production rose 1.6% in December, double expectations for a 0.8%
increase, while industrial production increased by 1.1%, compared
to expectations for a 0.9% rise.
A separate report showed that the U.K. trade deficit narrowed to
GBP8.9 billion in December, in line with expectations from a
revised deficit of GBP9.3 billion the previous month.
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