Forexpros – The euro slid against the yen on Monday as investors sold to await eurozone consumer confidence figures due out later Monday and unemployment figures Tuesday.
Sentiment the European Central Bank will loosen monetary policy later this week softened the euro against the safe-haven Japanese currency as well.
In Asian trading on Monday, EUR/JPY hit 96.32, down 0.34%, up from a low of 96.29 and off a high of 96.62.
The pair sought to test support at 94.12, a 12-year low hit on July 24, and resistance at 97.33, the high from July 27.
The European Central Bank is set to decide on interest rates and monetary policy this week, and market talk that policymakers will move is growing.
Last week, European Central Bank President Mario Draghi, French President Francois Hollande and German Chancellor Angela Merkel stated they will do what’s necessary to defend the currency.
The European Commission will release business and consumer confidence figures on Monday while eurozone unemployment figures will hit the wire later on Tuesday, which sent the euro lower on talk ECB may loosen policy either through rate cuts or by offering low-cost loans to banks, known as long-term refinancing operations.
Meanwhile in Japan, industrial production in fell unexpectedly last month.
The Ministry of Economy, Trade and Industry reported that industrial production fell to a seasonally adjusted -0.1% in June from -3.4% in May.
Analysts had expected industrial production to rise 1.5% last month.
The figured sent Japanese stocks cooling gains on hopes for stimulus in Europe and in the U.S. and demand for the yen rising.
The euro, meanwhile, was down against the pound and down against the Canadian dollar, with EUR/GBP trading down 0.04% at 0.7819 and EUR/CAD down 0.11% and trading at 1.2346.
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