Forex - EUR/JPY erases gains after S&P Greece rollover warning
Investing.com
Published Jul 04, 2011 08:59AM ET
EUR/JPY pulled back from 117.73, the pair’s highest since June 8, to hit 117.13 during European afternoon trade, shedding 0.21%.
The pair was likely to find support at 115.11, the low of June 28 and short-term resistance at 117.88, the high of 117.88 and a five-week high.
French lenders have proposed a plan to reinvest half of the proceeds from maturing Greek government bonds into new 30-year Greek bonds. The European Central Plan said that it supported the plan, as long as it was voluntary.
Earlier Monday, S&P said the proposal would “likely amount to a default under our criteria."
But the euro remained supported by expectations that the European Central Bank will lift interest rates at its monthly policy meeting on Thursday, after ECB head Jean-Claude Trichet said last week the bank was in “strong vigilance mode.”
Meanwhile, the euro clung to gains against the Swiss franc, with EUR/CHF up 0.04% to trade at 1.2320.
Also Monday, official data showed that producer price inflation in the euro zone declined slightly more than expected in May, on the back of cheaper oil prices.
Eurostat said that PPI declined by 0.2%, after rising by 0.9% in April. Analysts had expected the producer price index to decline by 0.1% in May.
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Written By: Investing.com
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