Forexpros – The euro trimmed losses against the yen on Monday, pulling back from a two-day low but remained vulnerable amid ongoing uncertainty over the outcome of Italy’s current political turmoil.
EUR/JPY pulled back from 106.85, the pair’s lowest since November 3 to hit 104.47 during early U.S. trade, still down 0.39%.
The pair was likely to find support at 105.66, the low of October 27 and resistance at 109.23, the high of November 1.
Market sentiment found support after Italian borrowing costs eased off earlier euro-era highs, on speculation that Prime Minister Berlusconi was about to step down amid mounting opposition from within his own party, ahead of a parliamentary vote on public finances on Tuesday.
The reports were subsequently denied by a spokesman for Mr. Berlusconi.
But the single currency remained under pressure after official data showed earlier that German industrial output fell more-than-expected in September.
In a report, Destatis, Germany’s federal statistical office said industrial production dropped by 2.7% in September, disappointing expectations for a 0.7% decline.
Elsewhere, the euro was also down against the U.S. dollar with EUR/USD shedding 0.17%, to hit 1.3770.
Also Monday, a report showed that retail sales in the single currency bloc fell more-than-expected in September, dropping 0.7%, far more than expectations for a 0.1% decline.
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