Forex EUR/JPY drops on Greek aid delay
Published Feb 15, 2012 10:36PM ET
Investing.com - The euro fell against the yen on Thursday after reports emerged that European leaders in charge of signing off on bailout money for Greece cancelled a meeting with Athens officials on fears of a lack of coalition support for tough austerity measures.
EUR/JPY hit 102.09 in Asian trading on Thursday, down 0.39% and up from a session low of 102.01 and off from a high of 102.52
The pair sought to test support at 101.84, Monday's low, and resistance at 103.49, Wednesday's high.
European Commission leaders have said they fear Greece doesn't have the political support to push through tough austerity measures that the country's parliament approved a few days ago.
Greece needs access to a EUR130 billion bailout fund in order to service a EUR14.5 billion bond payment due March 20.
Otherwise, the country risks defaulting in a messy manner, a threat that has been hanging over the market's head for weeks now.
Talk of delaying bailout payments had the market on edge early Thursday, sending the European currency weakening.
The euro, meanwhile, was down against the pound and flat against the Swiss franc, with EUR/GBP losing 0.18% to 0.8311 and EUR/CHF trading at 1.2068.
Later Thursday, Japan will release the minutes of its latest monetary policy meeting, while the ECB is to release its monthly bulletin, which provides investors with a detailed analysis of current and future economic conditions.
In Canada, official data is to be released on foreign security purchases as well as on manufacturing sales, a leading indicator of economic health.
The U.S. is to publish government data on building permits and housing starts, which will shed light into the health of the housing sector as well as on construction demand.
The U.S. will also release reports on producer price inflation and unemployment claims.
Furthermore, the U.S. will unveil manufacturing data in the Philadelphia area, while Federal Reserve Chairman Ben Bernanke is due to speak as well.
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Written By: Investing.com
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