Shutterstock photo
Markets

Forex - Euro higher vs. dollar

Shutterstock photo

Shutterstock photo

Investing.com - The euro was higher against the dollar on Monday as bond yields across the euro zone fell after the Bank of Japan embarked on new monetary stimulus measures.

EUR/USD hit 1.3038 during U.S. morning trade, the session high; the pair subsequently consolidated at 1.3017, edging up 0.10%.

The pair was likely to find support at 1.2967, the session low and resistance at 1.3075, the high of March 12.

The single currency found support as sovereign bond yields across the euro zone fell on Monday as investors moved away from Japanese bonds into higher yielding assets.

The yields on French, Belgian, Austrian and Dutch 10-year government bonds fell to record lows, while the yield on Spanish two-year bonds fell below 2% for the first time since October 2010.

The yield on Portuguese 10-year bonds bucked the trend rising to 6.39% after the country's constitutional court blocked parts of the government's austerity plan.

Meanwhile, official data showed that German industrial output rose 0.5% in February compared to expectations for a 0.3% increase.

However, January's figure was revised down to a decline of 0.6% from an initial flat reading.

Investors remained cautious after data on Friday showing that the U.S. economy added fewer than expected jobs in March raised doubts over the strength of the U.S. economic recovery.

Elsewhere, the euro was trading close to its highest level since January 2010 against the yen, with EUR/JPY advancing 1.26% to 128.41.

The BoJ conducted its first government bond purchasing operation on Monday, purchasing JPY1.2 trillion of Japanese government bonds maturing in five years or more.

Last week the BoJ said it plans to double its asset purchase program over the next two years and extend the maturities of the bonds it purchases in a bid to achieve its 2% inflation target.

Investing.com - Investing.com 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 @ Newsinvesting

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.

Other Topics

ForEx