By TraderVox.com
The 17-nation currency rose by 0.57 percent against the yen after gaining for three consecutive days. Another factor that leads to the increase of the euro against the yen and dollar is the release of German PPI, which was beyond expectation hitting a YoY high of 3.3 percent and MoM came at 0.6 percent. These figures indicate acceleration in the rate of inflation. The previous reading came at 3.2 percent for YOY and 0.4 percent for MoM. Further, the increase against the yen was also supported by poor Tertiary Industry Index report from Japan, which came worse than expected.
The euro was trading 107.86 with resistance expected at 107.89 and 108.41. The 17-nation currency is trading at 1.3167 with resistances of 1.3205 and 1.2995. However, analysts are pessimistic about the break and they are still holding a bearish outlook for the cross. The positive reports from Germany are canceled by the Italian and Spanish high yields. The Spanish 10-year bond yields have increased up to 5.98 percent while Italian yields have increased by over 1 percent to 5.68 percent. Despite the powerful PR carried by Italy to distance itself from Spain, investors are more interested in action other than words.
According to some analysts the positive reports from Germany are not enough to dispel the possible debt crisis looming in Spain and Italy. Traders are claiming that signs of a possible Greece-situation have already started to show in Spain. As the market goes into the Weekend the IMF meeting will remain in focus and their decision of Europe will carry a big weight on the Euro.
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