Investing.com - The euro weakened against the yen on Wednesday
as investors avoided the single currency upon learning that
eurozone industrial output figures missed expectations.
The yen saw some support on sentiments the currency has weakened
enough in recent months due to Prime Minister Shinzo Abe's calls
for looser monetary policies.
In U.S. trading on Wednesday, EUR/JPY was down 0.61% at 124.45, up
from a low of 124.19 and off a high of 125.22.
The pair sought to test support at 124.39, Tuesday's low, and
resistance at 126.04, Monday's high.
Official data released earlier revealed that the eurozone's
industrial output fell 0.4% in January, outpacing market calls for
a 0.1% decline.
Meanwhile in Italy, the country's Treasury sold EUR3.32 billion in
three-year government bonds at an average yield of 2.48%, up from
2.30% at a similar auction last month, which weakened the euro.
The auction was the first since Fitch Ratings slapped a one-notch
downgrade on Italy earlier this month.
The yen has depreciated by close to 8% in 2013 in wake of Abe's
calls for looser monetary policies.
New leadership at the Bank of Japan has also weakened the yen,
though traders snapped up nicely priced positions in the currency
on Wednesday after viewing it as an attractive buy and sent it
gaining against the euro.
The euro, meanwhile, was down against the pound and down against
the Canadian dollar, with EUR/GBP trading down 0.70% at 0.8685 and
EUR/CAD trading down 0.35% at 1.3321.
On Thursday, the European Central Bank will publish its monthly
bulletin, which gauges current and future economic conditions from
the bank's viewpoint. Meanwhile, European Union leaders are to hold
the first day of a two-day economic summit.
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