Forex Pros – The euro was down against the yen on Thursday, sliding to a six-week low as a sell-off in commodities hit risk appetite and dampened demand for riskier assists.
EUR/JPY hit 114.19 during European afternoon trade, the pair’s lowest since March 28; the pair subsequently consolidated at 114.56, shedding 0.39%.
The pair was likely to find short-term support at 113.54, the low of March 24 and resistance at 116.88, Wednesday’s high.
Speculation over whether Greece will receive more bailout funding continued, amid rising expectations that the country will eventually need to restructure its debt.
Meanwhile, sharp losses in commodity prices, with silver tumbling around 2.5% and oil down overnight, as well as falls on equity markets continued to drive demand for safe haven assets.
The euro was also lower against the Swiss franc, with EUR/CHF shedding 0.16% to hit 1.2577.
Also Thursday, official data showed that industrial production in the euro zone fell unexpectedly in March as output slowed sharply in Germany and Italy.
Eurostat said industrial output dropped 0.2% from February, the first decline in six months, and was 5.3% higher than in March last year, marking the weakest annual gain for 13 months. Analysts had expected growth of 0.3% on the month and 6.3% year-on-year in March.
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