Investing.com - The euro shot up against the yen on Tuesday
after eurozone service-sector data beat market calls.
A decision by Bank of Japan Governor Masaaki Shirakawa to step down
on March 19, three weeks before he was otherwise scheduled to do
so, further weakened the yen against the single currency.
In U.S. trading on Tuesday, EUR/JPY hit 127.06, up 1.78% and up
from a low of 124.03 and off a high of 127.20.
The pair sought to test support at 124.03, the earlier low, and
resistance at 127.20, the earlier high.
Shirakawa's exit fueled growing expectations that Japanese Prime
Minister Shinzo Abe will name a replacement who favors loosening
policy to prioritize growth over inflation, which would weaken the
Meanwhile, the euro rose after the Markit research group reported
that the eurozone services purchasing managers' index rose to 48.6
in January, beating market expectations for a reading of 48.3.
Elsewhere, the European Central Bank is scheduled to meet later
this week to analyze policy, and expectations that monetary
authorities will make no changes bolstered the euro even more on
Tuesday, though weak eurozone retail sales figures dampened spirits
Eurozone retail sales dropped 0.8% in December, much worse than
market calls for a 0.5% contraction.
The euro, meanwhile, was up against the pound and up against the
Canadian dollar, with EUR/GBP trading up 1.22% at 0.8678 and
EUR/CAD trading up 0.26% at 1.3533.
On Wednesday in the eurozone, Germany is to release official data
on factory orders, a leading indicator of production.
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 @