Investing.com - The euro was sharply higher against the U.S. dollar on Monday, after the European Union agreed to lend Spain as much as EUR100 billion to bailout its banks, easing concerns over an escalation of the sovereign debt crisis in the euro zone.
EUR/USD hit 1.2669 during late Asian trade, the pair’s highest since May 23; the pair subsequently consolidated at 1.2637, jumping 0.96%.
The pair was likely to find support at 1.2434, Friday’s low and near-term resistance at 1.2687, the high of May 23.
On Saturday, Spain’s Finance Minister Luis de Guindos said the EU will grant Spain a loan of up to EUR100 billion that the government will use to recapitalize the country’s ailing banking sector.
Finance ministers from the euro zone welcomed the move, saying the sum "must cover estimated capital requirements with an additional safety margin."
But the euro remained vulnerable amid uncertainty over the outcome of a Greek general election on June 17, which could determine whether or not the country can remain within the euro area.
Markets shrugged off official data showing that Chinese inflation, industrial output and retail sales disappointed expectations in May, after unexpectedly strong import data eased concerns over a ‘hard landing’ in the world’s second largest economy.
The euro posted sharp gains against the yen, with EUR/JPY jumping 1.14% to hit 100.58 and was also higher against the pound, with EUR/GBP adding 0.42% to hit 0.8124.
Later in the day, France was to publish official data on industrial production, while Italy was to announce the details of an auction of government bonds.
EUR/USD hit 1.2669 during late Asian trade, the pair’s highest since May 23; the pair subsequently consolidated at 1.2637, jumping 0.96%.
The pair was likely to find support at 1.2434, Friday’s low and near-term resistance at 1.2687, the high of May 23.
On Saturday, Spain’s Finance Minister Luis de Guindos said the EU will grant Spain a loan of up to EUR100 billion that the government will use to recapitalize the country’s ailing banking sector.
Finance ministers from the euro zone welcomed the move, saying the sum "must cover estimated capital requirements with an additional safety margin."
But the euro remained vulnerable amid uncertainty over the outcome of a Greek general election on June 17, which could determine whether or not the country can remain within the euro area.
Markets shrugged off official data showing that Chinese inflation, industrial output and retail sales disappointed expectations in May, after unexpectedly strong import data eased concerns over a ‘hard landing’ in the world’s second largest economy.
The euro posted sharp gains against the yen, with EUR/JPY jumping 1.14% to hit 100.58 and was also higher against the pound, with EUR/GBP adding 0.42% to hit 0.8124.
Later in the day, France was to publish official data on industrial production, while Italy was to announce the details of an auction of government bonds.