Investing.com - Financial Markets Worldwide
🔺 What to do when markets are at an all-time high? Find smart bargains, like these.See Undervalued Stocks

Forex - EUR/USD higher on Greek hopes despite Spanish troubles

Published 05/28/2012, 11:55 AM
Updated 05/28/2012, 11:56 AM
EUR/USD
-
EUR/GBP
-
EUR/JPY
-

Investing.com - The euro traded higher against the U.S. dollar in slow holiday trade Monday, despite worries over rising Spanish borrowing costs fuelling fears that Madrid could be forced into seeking an international bailout.

EUR/USD pulled back from 1.2625, the pair’s highest since May 23, to hit 1.2546 during U.S. afternoon trade, up 0.24% on the session.

The pair was likely to find support at 1.2495, Friday’s low and an almost two-year low and resistance at 1.2625, the session high.

The yield on Spain’s 10-year bond rocketed to 6.47% earlier in the day, the highest this year and a level considered unsustainable in the long run, after closing at 6.34% on Friday. 

The spike in long-term borrowing costs came after Spain’s government announced Sunday that it was to recapitalize one of the country’s largest commercial lenders, Bankia, sparking fears over the rising cost of bank rescues on government spending.

Investor sentiment was lifted earlier as fears over the possibility of a Greek exit from the euro zone subsided after weekend opinion polls showed increasing support for pro-bailout party New Democracy ahead of elections due to be held on June 17.

The euro advanced against the pound but traded lower against the yen, with EUR/GBP adding 0.12% to hit 0.8000 and EUR/JPY shedding 0.09% to trade just above a three-and-a-half month low at 99.53.

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.



Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.