Forexpros – The U.S. dollar was lower against the yen on Wednesday, falling to a six-week low as concerns over the euro zone’s financial woes ahead of a German government debt auction supported safe haven demand.
USD/JPY hit 76.62 during early European trade, the daily low; the pair subsequently consolidated at 76.63, shedding 0.12%.
The pair was likely to find support at 76.40, the low of September 29 and resistance at 76.95, Tuesday’s high.
Market sentiment waned as Germany’s Treasury was set to EUR5 billion of 10-year government bonds later in the day.
New ways to tackle the euro zone’s financial crisis were also in focus, as investors turned to a meeting between French President Nicolas Sarkozy and German Chancellor Angela Merkel on January 9 slated to advance discussions on tighter fiscal integration in the European Union.
In the U.S., the Federal Reserve said it will begin later this month to publish the predictions of its senior officials about their own decisions, hoping to increase its influence over economic activity.
In the minutes of its December policy setting meeting, the bank added that “current and prospective economic conditions could well warrant additional policy accommodation, but they believed that any additional actions would be more effective if accompanied by enhanced communication.”
Elsewhere, the yen was fractionally higher against the euro with EUR/JPY easing 0.06%, to trade at 100.07.
Earlier Wednesday, official data showed that French consumer spending declined unexpectedly in November, ticking down 0.1% after a 0.1% rise the previous month.
Analysts had expected French consumer spending to rise 0.3% in November.
Later in the day, the U.S. was to release data on factory orders.
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