Investing.com - The euro slumped against the Japanese yen on
Friday after French gross domestic product figures came in slightly
weaker than expected.
Bottom fishers snapped up nicely price yen positions as well on
sentiment that currency has weakened enough on talk of policy
In U.S. trading on Friday, EUR/JPY hit 113.81, down 0.16% and up
from a low of 113.30 and off a high of 114.70.
The pair sought to test support at 113.30, the earlier low, and
resistance at 114.70, the earlier high.
In Europe earlier, the Markit research group reported that the
eurozone's retail purchasing managers' index fell to 44.5 in
December from 45.8 the previous month.
Elsewhere, official data revealed that French consumer spending
rose 0.2% in November, more than market forecasts for a 0.1%
increase and up from a 0.1% decline the previous month.
Also in France, however, the country's gross domestic product rose
less than expected in the last quarter.
The country's National Institute for Statistics and Economic
Studies said that French GDP rose by a seasonally adjusted 0.1% in
the third quarter from 0.2% in the preceding quarter.
Analysts were expecting French GDP to rise 0.2% in the third
The yen has come under pressure lately on expectations that
Japanese Prime Minister Shinzo Abe will push for more monetary
easing at the Bank of Japan.
Bottom fishers sent the Japanese currency rising on Friday,
especially as demand for safe-haven currencies picked up due to
fiscal uncertainty in the U.S..
Failure in Washington to resolve a budgetary impasse could result
in tax breaks expiring at the close of 2012 right when automatic
cuts to government spending kick in, a combination known as a
fiscal cliff that could push the U.S. into a recession next year.
Recent data pushed the yen down in earlier sessions as well.
The Markit research group said that Japan's purchasing managers'
index deteriorated to 45.0 in December from a reading of 46.5 the
A separate report showed that industrial production in Japan
dropped far beyond expectations in November, declining 1.7% after a
1.6% increase the previous month. Analysts had expected industrial
production to fall 0.5% last month.
Official data also revealed that Japan's retail sales rose by 1.3%
in November, more than the expected 1.1% increase, after a 1.2%
drop the previous month.
Elsewhere, the euro was down against the pound and flat against the
Canadian dollar, with EUR/GBP trading down 0.44% at 0.8186 and
EUR/CAD trading down 0.01% at 1.3174.
offers an extensive set of professional tools for the Forex,
Commodities, Futures and the Stock Market including real-time data
streaming, a comprehensive economic calendar, as well as financial
news and technical & fundamental analysis by in-house experts.
Read more News on Investing.com or Follow us on Twitter at @