Investing.com - The pound remained moderately higher against the U.S. dollar on Monday, as hopes that Greece may not be forced out of the euro zone continued to support market sentiment although ongoing concerns over Spain’s financial troubles limited gains.
GBP/USD 1.5717 during European afternoon trade, the pair’s highest since May 24; the pair subsequently consolidated at 1.5692, adding 0.16%.
Cable was likely to find support at 1.5629, the low of May 25 and resistance at 1.5725, the high of May 24.
Markets were jittery as the yield on Spain’s 10-year bond rose to 6.47%, the highest this year and a level considered unsustainable in the long run, after closing at 6.34% on Friday.
The rise 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.
The pound rose to a two-day high against the greenback earlier in the day, after a Greek opinion poll on Sunday indicated that the pro-bailout 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.
Investors remained cautious however, amid uncertainty over the outcome of the upcoming Greek elections.
Elsewhere, the pound was steady against the euro with EUR/GBP easing up 0.01%, to hit 0.7990.
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 1.5717 during European afternoon trade, the pair’s highest since May 24; the pair subsequently consolidated at 1.5692, adding 0.16%.
Cable was likely to find support at 1.5629, the low of May 25 and resistance at 1.5725, the high of May 24.
Markets were jittery as the yield on Spain’s 10-year bond rose to 6.47%, the highest this year and a level considered unsustainable in the long run, after closing at 6.34% on Friday.
The rise 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.
The pound rose to a two-day high against the greenback earlier in the day, after a Greek opinion poll on Sunday indicated that the pro-bailout 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.
Investors remained cautious however, amid uncertainty over the outcome of the upcoming Greek elections.
Elsewhere, the pound was steady against the euro with EUR/GBP easing up 0.01%, to hit 0.7990.
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.