Forex - Euro loses support against yen after Trichet remarks

Forex Pros – The broadly weaker euro tumbled to a three-day low against the yen on Thursday, after the European Central Bank president said that the banks interest rate was "appropriate" despite a short-term uptick in energy prices.

EUR/JPY hit 111.62 during European afternoon trade, the pair's lowest since Monday; the pair subsequently consolidated at 111.8, tumbling 0.72%.

The pair was likely to find support at 110.3, the low of January 20 and resistance at 112.86, the day's high.

Jean-Claude Trichet said that "very close monitoring" of price developments was "warranted” but added that inflation expectations remained “firmly anchored,” after the ECB held its minimum bid rate at 1.00%, unchanged for the 21st successive month.

Trichet said higher prices were prompted “mainly” by rising energy and commodity costs and that this “has not so far affected our assessment that price developments will remain in line with price stability over the policy-relevant horizon.”

The euro was also lower against the Swiss franc and the U.S. dollar, with EUR/CHF down 0.16% to hit 1.2957 and EUR/USD plunging 0.97% to hit 1.3675.

Also Thursday, U.S. government data showed that the number of people claiming first time unemployment assistance in the U.S. last week fell more-than-expected.

Later in the day, the U.S. Institute of Supply Management was to publish its non-manufacturing PMI while the Chairman of the Federal Reserve, Ben Bernanke, was to speak at a public engagement.




ForexPros.com - Forex Pros offers a diverse set of professional tools for Forex, Futures and CFDs. These include real-time data streams, technical and fundamental analysis by in-house experts, and a widely used economic calendar.