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Forex - EUR/JPY higher but gains capped ahead of Greece vote

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Forexpros - The euro was up against the yen on Monday, rising to a daily high but gains were limited amid concerns that the euro zone's debt crisis will deepen if Greece rejects a new austerity package.

EUR/JPY hit 114.86 during European afternoon trade, the daily high; the pair subsequently consolidated at 114.75, rising 0.57%.

The pair was likely to find support at 113.48, the low of June 16 and a five-week low and resistance at 115.80, the high of June 22.

Over the weekend, French lenders proposed a plan to reinvest half of the proceeds from maturing Greek government bonds into new 30-year Greek bonds.

European governments have said they want private creditors to roll over as much as EUR30 billion worth of Greek government bonds.

Greece's Prime Minister George Papandreou needs to secure parliamentary approval for a EUR28.4 billion, five-year austerity package on Wednesday, in order to access a EUR12 billion bailout from the European Union and the International Monetary Fund.

If the plan is not passed, it could result in the euro zone's first sovereign debt default, as Greece needs to cover EUR6.6 billion of bonds maturing in August.

The euro was hovering just above the all-time low against the Swiss franc, with EUR/CHF easing up 0.20% to hit 1.1852.

Earlier Monday, official data showed that U.S. personal spending was unexpectedly flat in May as automobile sales declined, while personal income rose broadly in line with expectations.

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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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