Investing.com - The euro was steady close to a session high against the U.S. dollar on Monday, as weekend regional election results in Spain added to hopes that the country is moving closer to requesting a bailout.
EUR/USD hit 1.3076 during European afternoon trade, the session high; the pair subsequently consolidated at 1.3065, gaining 0.33%.
The pair was likely to find support at 1.3012, Friday’s low and resistance at 1.3127, Thursday’s high.
The euro found support after Spanish regional election results indicated support for the austerity policies of Prime Minister Mariano Rajoy.
The center-right Popular Party of Prime Minister Rajoy increased its majority in his home region of Galicia on Sunday, removing a possible obstacle to formally requesting a bailout from Spain’s euro zone partners.
A bailout request by Spain would activate the European Central Bank’s bond purchasing scheme, aimed at lowering high peripheral bond yields in the euro zone.
Prime Minister Rajoy said Friday he still had not decided whether to request a sovereign bailout.
The euro was trading close to a four-month high against the pound, with EUR/GBP easing up 0.14% to 0.8146 and the single currency climbed to five-and-a-half month high against the broadly weaker yen, with EUR/JPY up 1.01% to 104.31.
The yen remained under pressure after weaker-than-forecast Japanese trade data earlier Monday fuelled expectations for more monetary easing by the Bank of Japan later this month.
Japan posted a JPY558.6 billion trade deficit in September, as exports fell 10.3% from the same month last year, the biggest drop since May 2011, two months after Japan’s earthquake disaster.
EUR/USD hit 1.3076 during European afternoon trade, the session high; the pair subsequently consolidated at 1.3065, gaining 0.33%.
The pair was likely to find support at 1.3012, Friday’s low and resistance at 1.3127, Thursday’s high.
The euro found support after Spanish regional election results indicated support for the austerity policies of Prime Minister Mariano Rajoy.
The center-right Popular Party of Prime Minister Rajoy increased its majority in his home region of Galicia on Sunday, removing a possible obstacle to formally requesting a bailout from Spain’s euro zone partners.
A bailout request by Spain would activate the European Central Bank’s bond purchasing scheme, aimed at lowering high peripheral bond yields in the euro zone.
Prime Minister Rajoy said Friday he still had not decided whether to request a sovereign bailout.
The euro was trading close to a four-month high against the pound, with EUR/GBP easing up 0.14% to 0.8146 and the single currency climbed to five-and-a-half month high against the broadly weaker yen, with EUR/JPY up 1.01% to 104.31.
The yen remained under pressure after weaker-than-forecast Japanese trade data earlier Monday fuelled expectations for more monetary easing by the Bank of Japan later this month.
Japan posted a JPY558.6 billion trade deficit in September, as exports fell 10.3% from the same month last year, the biggest drop since May 2011, two months after Japan’s earthquake disaster.