Investing.com - The pound held gains against the U.S. dollar on Monday, as market sentiment found support amid hopes Greece may not be forced out of the euro zone after weekend opinion polls showed growing support for pro-bailout parties ahead of June elections.
GBP/USD hit 1.5717 during European afternoon trade, the pair’s highest since May 24; the pair subsequently consolidated at 1.5697, rising 0.19%.
Cable was likely to find support at 1.5629, Friday’s low and a more than two-month low and resistance at 1.5770, the high of May 23.
Sentiment improved after an opinion poll on Sunday indicated that the conservative New Democracy party may be able to form a government following the June 17 elections, after elections in early May resulted in a political deadlock.
But investors remained cautious amid uncertainty over the outcome of the upcoming Greek elections, while fears over the health of Spain’s banking sector and the country’s rising borrowing costs also weighed.
Spain’s government announced Sunday that it was to recapitalize one of the country’s largest commercial lenders, fuelling fresh fears that the rising cost of bank rescues could force Madrid into seeking an international bailout.
Elsewhere, the pound was lower against the euro with EUR/GBP adding 0.28%, to hit 0.8012.
Earlier Monday, Spain’s Treasury auctioned the full targeted amount of EUR3.5 billion of two-year bonds, but the yield climbed to 4.03%, up sharply from 3.35% at a similar auction in April.
Meanwhile, the yield on Spanish 10-year government bonds climbed to 6.50% on Monday, up from 6.34% on Friday.
Trade looked likely to remain quiet on Monday, with some markets in Europe closed for holidays, while markets in the U.S. were to remain closed for the Memorial Day holiday.
GBP/USD hit 1.5717 during European afternoon trade, the pair’s highest since May 24; the pair subsequently consolidated at 1.5697, rising 0.19%.
Cable was likely to find support at 1.5629, Friday’s low and a more than two-month low and resistance at 1.5770, the high of May 23.
Sentiment improved after an opinion poll on Sunday indicated that the conservative New Democracy party may be able to form a government following the June 17 elections, after elections in early May resulted in a political deadlock.
But investors remained cautious amid uncertainty over the outcome of the upcoming Greek elections, while fears over the health of Spain’s banking sector and the country’s rising borrowing costs also weighed.
Spain’s government announced Sunday that it was to recapitalize one of the country’s largest commercial lenders, fuelling fresh fears that the rising cost of bank rescues could force Madrid into seeking an international bailout.
Elsewhere, the pound was lower against the euro with EUR/GBP adding 0.28%, to hit 0.8012.
Earlier Monday, Spain’s Treasury auctioned the full targeted amount of EUR3.5 billion of two-year bonds, but the yield climbed to 4.03%, up sharply from 3.35% at a similar auction in April.
Meanwhile, the yield on Spanish 10-year government bonds climbed to 6.50% on Monday, up from 6.34% on Friday.
Trade looked likely to remain quiet on Monday, with some markets in Europe closed for holidays, while markets in the U.S. were to remain closed for the Memorial Day holiday.