Investing.com – The euro eased off a 10-month high against the yen on Monday, on the back of the view that a rate hike by the European Central Bank later this week was now priced in by markets.
EUR/JPY retreated from 120.04, the pair’s highest since May 10, 2010 to hit 119.55 during European afternoon trade, dipping 0.06%.
The pair was likely to find support at 117.66, Friday’s low and resistance at 112.27, the high of May 10, 2010.
Earlier in the day, official data showed that producer price inflation in the euro zone posted its sharpest annual gain for nearly two-and-a-half years in February, boosted by surging energy costs.
Eurostat said that producer prices rose 0.8% from January and were 6.6% higher than in February last year, the strongest annual increase since September 2008. Analysts had expected a 0.9% monthly gain and a 6.7% annual rise in producer prices.
Energy prices jumped 1.2% on the month for a 12.8% annual increase, Eurostat said.
The ECB was widely expected to raise interest rates on Thursday for the first time since October 2008.
The euro was also lower against the Swiss franc, with EUR/CHF shedding 0.17% to hit 1.3125.
EUR/JPY retreated from 120.04, the pair’s highest since May 10, 2010 to hit 119.55 during European afternoon trade, dipping 0.06%.
The pair was likely to find support at 117.66, Friday’s low and resistance at 112.27, the high of May 10, 2010.
Earlier in the day, official data showed that producer price inflation in the euro zone posted its sharpest annual gain for nearly two-and-a-half years in February, boosted by surging energy costs.
Eurostat said that producer prices rose 0.8% from January and were 6.6% higher than in February last year, the strongest annual increase since September 2008. Analysts had expected a 0.9% monthly gain and a 6.7% annual rise in producer prices.
Energy prices jumped 1.2% on the month for a 12.8% annual increase, Eurostat said.
The ECB was widely expected to raise interest rates on Thursday for the first time since October 2008.
The euro was also lower against the Swiss franc, with EUR/CHF shedding 0.17% to hit 1.3125.