Forex - EUR/JPY shoots up against yen amid global hunt for yield


Shutterstock photo - The euro firmed against the yen on Tuesday after investors abandoned safe-haven yen positions taken up during Monday's global market selloff and chased the single currency for yield.

In U.S. trading on Tuesday, EUR/JPY was up 1.91% at 128.54, up from a low of 125.00 and off a high of 129.03.

The pair sought to test support at 125.00, the earlier low, and resistance at 129.32, Monday' high.

In Europe earlier, Germany's ZEW index of economic sentiment index dropped to 36.3 in April from 48.5 in March, falling short of market expectations for a 42.0 reading.

The broader eurozone ZEW economic sentiment index ticked down to 24.9 this month from 33.4 in March, also falling short of market expectations, which were forecasting a 31.5 reading.

Prices in Europe, however, remain stable, according to economic data, which enticed investors out of safe-haven yen and dollar positions.

Eurostat reported earlier that the eurozone's consumer price index remained unchanged at an annualized rate of 1.7% in March, in line with expectations.

Core CPI in the single currency bloc rose 1.5% last month, up from 1.3% in February and beating market expectations for a rise to 1.4%.

Softer-than-expected Chinese growth figures and a disappointing regional U.S. manufacturing index sparked a rush to safe-haven currencies on Monday.

The euro, meanwhile, was up against the pound and up against the U.S. dollar, with EUR/GBP trading up 0.57% at 0.8578 and EUR/USD trading up 1.14% at 1.3186.

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This article appears in: Investing Forex and Currencies
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