Investing.com - The euro rose against the yen on Monday after
bottom fishers viewed the currency as nicely priced.
The single currency fell against most other currencies earlier
after European Central Bank President Mario Draghi said more rate
cuts were possible if the economy deteriorates any further.
In U.S. trading on Tuesday, EUR/JPY was up 0.07% at 130.03, up from
a low of 129.61 and off a high of 130.41.
The pair sought to test support at 129.61, the earlier low, and
resistance at 130.67, the high from April 22.
The European Central Bank recently trimmed benchmark interest rates
by 25 basis points to 0.50%, though further action could be
necessary if the economy doesn't gain steam, Draghi said in Rome
earlier Monday, which weakened the euro to levels ripe for bargain
hunting against the yen.
Last week, the eurozone's unemployment rate hit a record 12.1% in
March, while the consumer price index dipped down to 1.2% in April,
well below the ECB's 2% inflation target.
Elsewhere on Monday, Eurostat, the statistical arm of the European
Union, reported that retail sales fell 0.1% in March, in line with
Retail sales for February were revised to a 0.2% decline from a
previously reported 0.3% drop.
Year-over-year, retail sales dropped 2.4% in March, worse than
expectations for a 2.2% decline, after falling 1.7% in February.
Confidence in the currency zone's economy remains fragile, industry
Market research group Sentix reported earlier that its index of
investor confidence improved to -15.6 in May from a reading of
-17.3 in April.
However, analysts were expecting the index to improve a little more
and come to -15.2 this month.
On the index, a level above 0.0 indicates optimism, below indicates
Elsewhere, data released earlier by Markit Economics revealed that
its eurozone's service-sector index rose to 47.0 in April from 46.6
Analysts had expected the number to remain unchanged at 46.6.
In Spain, the number of unemployed people declined unexpectedly in
April, falling for the second consecutive month, official data
showed on Monday.
The Spanish government said earlier the number of unemployed people
in the country fell by 46,100 in April, defying expectations for an
increase of 17,100.
The number of unemployed people in Spain declined by 5,000 in
The euro, meanwhile, was down against the pound and down against
the U.S. dollar, with EUR/GBP trading down 0.12% at 0.8414 and
EUR/USD trading down 0.30% at 1.3079.
On Tuesday, Germany is to release official data on factory orders,
while France is to produce data on industrial production.
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