Forexpros – The euro was lower against the yen on Wednesday, as doubts over whether European leaders can agree on measures to arrest the spread of the debt crisis in the euro zone at this week’s key European Union summit weighed.
EUR/JPY hit 103.79 during European afternoon trade, the daily low; the pair subsequently consolidated at 103.81, shedding 0.35%.
The pair was likely to find support at 103.06, the low of November 28 and resistance at 104.51, the session high and a two-day high.
Sentiment on the euro was dented after the Wall Street Journal reported that an unnamed senior German official expressed pessimism on the prospect of success at the two-day EU summit, scheduled to begin Thursday.
European leaders are to discuss proposed changes to EU treaties which would allow for greater fiscal integration and stricter enforcement of budgetary discipline in the single currency bloc, clearing the way for the European Central Bank to play a bigger role in stabilizing euro zone bond markets.
European officials are also reported to be negotiating an increase in the bloc’s bailout fund, the European Financial Stability Facility and the permanent structure that will replace it, the European Stability Mechanism.
The single currency found some support from speculation that the European Central Bank may cut interest rates by 0.25% to 1% at its policy-setting meeting on Thursday.
The euro was also lower against the U.S. dollar, with EUR/USD shedding 0.36% to hit 1.3353.
Also Wednesday, official data showed that German industrial production rose 0.8% in October, beating expectations for a 0.3% increase. However, the country’s economy ministry said it expects production to remain muted in the months ahead.
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