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Forex - EUR/JPY gains as Schauble downplays stimulus talk

Published 08/27/2014, 11:34 AM
Updated 08/27/2014, 11:35 AM

Investing.com - The euro rose against the yen on Wednesday after German Finance Minister Wolfgang Schauble said European Central Bank President Mario Draghi's recent dovish comments may have been misinterpreted by markets.

In U.S. trading, EUR/JPY was up 0.08% at 137.14, up from a session low of 136.75 and off a high of 137.30.

The pair was likely to find support at 136.37, the low from Aug. 12, and resistance at 138.00. Friday's high.

The single currency strengthened broadly after German Finance Minister Wolfgang Schauble said comments made by European Central Bank President Mario Draghi suggesting fiscal policy could spur growth were "overinterpreted."

Draghi said week that the policy makers are ready to take more unconventional action if needed to stimulate a sluggish euro zone economy, which left many pondering the possibility that fiscal stimulus could accompany loose monetary policies to jumpstart European recovery.

Elsewhere, data revealed that the Gfk German consumer climate index fell to 8.6 this month from 9.0 in July. Analysts had expected the index to remain unchanged in August, though Schauble's comments served as the pair's chief steering current.

Elsewhere, the euro was down against the pound, with EUR/GBP down 0.04% at 0.7958, and up against the dollar, with EUR/USD up 0.19% at 1.3193.

On Thursday, expect most major currencies to focus more on the U.S. and move on gross domestic product data, weekly initial jobless claims and a report on pending home sales.

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