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Forex - EUR/JPY hits 5-day low as risk appetite sours

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Forex Pros - The euro tumbled to a five-day low against the broadly stronger yen on Tuesday, as investors sought out safe haven assets as the world remained on high alert for potential reprisals from terrorist groups linked to al Qaeda.

EUR/JPY hit 119.21 during European afternoon trade, the pair's lowest since April 26; the pair subsequently consolidated at 119.48, tumbling 0.78%.

The pair was likely to find support at 118.48, the low of April 26 and resistance at 121.02, Monday's high.

Earlier in the day, the U.S. and Australia increased security at their embassies, while Interpol told its 188 member countries to be on "full alert" after President Barack Obama Sunday announced the killing of Al Qaeda leader Osama bin Laden in Pakistan.

However, the single currency remained supported after official data showed that European producer price inflation unexpectedly accelerated to the fastest pace in two-and-a-half-years in March.

Eurostat said factory-gate prices jumped 6.7% in March from a year earlier, rising at the fastest rate since September 2008. Economists had expected factory-gate prices to rise by 6.6%. Prices rose 0.7% on the month, in line with expectations.

The euro was also lower against the Swiss franc, with EUR/CHF shedding 0.30% to hit 1.2794.

Elsewhere Tuesday, markets in Japan remained closed for the Golden Week holiday.

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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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