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Forex - EUR/JPY drops as market awaits ECB decision later this week

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Investing.com - The euro softened against the Japanese yen on Monday after investors largely avoided the single currency ahead of Thursday's European Central Bank decision on interest rates.

In U.S. trading on Monday, EUR/JPY hit 115.16, down 0.05% and up from a low of 114.11 and off a high of 115.56.

The pair sought to test support at 114.11, the earlier low, and resistance at 115.56, the earlier high.

The European Central Bank will hold a monetary policy meeting and announce its decision on interest rates on Thursday, and expectations for a rate cut sent the euro falling against safe-haven currencies for much of the session.

The single currency did see support, however, after did firming confidence data hit the wire in Europe earlier.

In Europe, the Sentix index of investor confidence came in at -7.0 for January, its highest level since February 2011, beating out -16.8 in December, which bolstered the euro.

Analyst were expecting a reading of -15.0.

Elsewhere, official data revealed that the eurozone's producer price index declined 0.2% in November, defying expectations for a 0.1% increase, though markets largely ignored the data.

Elsewhere, the euro was up against the pound and up against the Canadian dollar, with EUR/GBP trading up 0.12% at 0.8142 and EUR/CAD trading up 0.21% at 1.2931.

On Tuesday, the eurozone will release official data on unemployment on retail sales, while Germany is to release government data on factory orders.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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