Forexpros – The euro was lower against the Japanese yen on Friday dragged down by slumping European stocks and fears of a possible downgrade to Spain’s credit rating.
EUR/JPY was trading at 110.73 in late U.S. trade, down 0.55%, after reaching a high of 111.56.
The pair was likely to find support at 110.70, Thursday’s low, and resistance at 111.56, the day‘s high.
By the close of Friday trade in Europe, the FTSE dropped 0.99% to 5,815.19, France’s CAC fell 1.07% to 3,672.3, and Germany’s DAX was off 0.44% to 7,158.77
Meanwhile, Moody’s Investor Service said it was placing Spain under review for a possible debt ratings downgrade. Earlier in European trade, the Spanish government announced that the country’s unemployment rate remained above 20%.
The euro was up against the U.S. dollar but lower against the British pound, with EUR/USD adding 0.32% to hit 1.4381, and EUR/GBP down 0.01% to hit 0.8753.
Global markets remained fixated on the ongoing debate among lawmakers in the U.S. on a plan to raise the country’s debt ceiling ahead of an August 2 deadline.
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