EUR/JPY Falls Following Release Of Poor European Data
The second half of last week saw a steady rise in the EUR/JPY pairing from 138.84 on Wednesday to a high of 141.12 on Friday. However, it has since dropped a bit and is currently trading around 139.78.
The Euro has weakened in the last few days after data showed that this month’s output in the Euro Zone private sector grew at the slowest rate so far this year which added to fears about the region’s general economic recovery. The Euro Zone composite output index fell to a nine month low of 52.3 from 52.5 in August. Furthermore, the PMI fell to a three month low of 52.8 and the manufacturing index fell to a 14 month low of 50.5
Japan is due to release its latest manufacturing purchasing manager’s index this week. Some think that it will show a slowdown in the Japanese economy, in which case the EUR/JPY may fall lower.