Forexpros – The U.S. dollar trimmed losses against the yen on Wednesday, pulling away from a one-week low but the greenback remained under pressure amid ongoing concerns over Greece’s financial woes.
USD/JPY pulled back from 80.59, the pair’s lowest since February 29, to hit 80.82 during early European trade, still down 0.09%.
The pair was likely to find support at 80.24, the low of February 29 and resistance at 81.20, the high of February 24.
Concerns over a potential Greek default persisted ahead of the March 8 deadline for the country’s private creditors to sign on to a EUR106 billion debt swap deal, a requirement for Athens to tap a recently approved EUR130 billion bailout fund.
On Tuesday, Greek finance minister Evangelos Venizelos strongly urged private sector creditors to take part in the debt swap deal and warned that bond-holders who rejected the deal would not be paid out later.
Market sentiment was also dented by fears that the euro zone is slipping into a recession after data on Tuesday confirmed that the region’s economy contracted by 0.3% in the last three months of 2011, as household spending, exports and imports all fell.
Elsewhere, the yen was lower against the euro with EUR/JPY adding 0.11%, to hit 106.20.
Later in the day, the U.S. was to publish a report on ADP non-farm payrolls, followed by revised data on non-farm productivity and labor costs, as well as a report on crude oil stockpiles.
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