Friday, February 15, 2013

Forex - EUR/JPY drops on poor E.U. growth figures - The euro dropped against the yen after the E.U. released dismal fourth-quarter economic growth figures earlier Friday.

Then yen, meanwhile, continued to see demand in wake of a Group of Seven statement expressing concern over weakening currencies, which most market players interpreted as a warning to Tokyo to avoid actively devaluing the currency.

In U.S. trading on Thursday, EUR/JPY hit 124.22, down 1.15% and up from a low of 123.81 and off a high of 125.95.

The pair sought to test support at 123.44, last Friday's low, and resistance at 126.94, Tuesday's high.

Eurostat, the statistical arm of the European Union, reported earlier that the eurozone's GDP contracted by 0.6% in the fourth quarter of 2012 from the third, well beyond expectations for a 0.4% decline and far surpassing g the previous 0.1% quarterly contraction.

The dip in total output represented the fastest rate of decline since 2009 and marked a third consecutive quarter of contraction.

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