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29 Dec 2014
EUR/JPY testing the resilience of 147.00/20 barrier
FXStreet (Guatemala) - EUR/JPY is trading at 146.84, up 0.16% on the day, having posted a daily high at 147.25 and low at 146.50.
The cross is bid and testing the resilience of the 147 handle. The major stories surrounding the cross are political, with a) Greece facing a snap general election, probably on January 25, from the failure of a third and final presidential election and b) The Abe cabinet approving a JPY3.5 trillion supplemental budget over the weekend which they estimate the spending of will add 0.7% to their GDP.
The Yen remains weak while the Euro didn’t react to the Greece story. The timing of the election might complicate the ECB’s considerations ahead of the Jan 22 policy meeting, as explained by Eric Theoret, Currency Strategist at Scotiabank, given that the Greek political debate is centred on debt restructuring.
The cross is bid and testing the resilience of the 147 handle. The major stories surrounding the cross are political, with a) Greece facing a snap general election, probably on January 25, from the failure of a third and final presidential election and b) The Abe cabinet approving a JPY3.5 trillion supplemental budget over the weekend which they estimate the spending of will add 0.7% to their GDP.
The Yen remains weak while the Euro didn’t react to the Greece story. The timing of the election might complicate the ECB’s considerations ahead of the Jan 22 policy meeting, as explained by Eric Theoret, Currency Strategist at Scotiabank, given that the Greek political debate is centred on debt restructuring.