Investing.com - The euro pushed higher against the pound on Monday after Greek opinion polls showed increasing support for a pro-bailout party, but the shared currency’s gains were limited amid sustained concerns over the situation in the euro zone.
EUR/GBP hit 0.8037 during European morning trade, the session high; the pair subsequently consolidated at 0.8017, gaining 0.34%.
The pair was likely to find support at 0.7979, Friday’s low and a seven-day low and short-term resistance at 0.8060, the high of May 23.
Investor sentiment strengthened after an opinion poll indicated that Greek conservative party New Democracy may be able to form a government following the June 17 elections, after inconclusive election earlier this month sparked fears that the country could be forced out of the euro area.
But investors remained wary amid uncertainty over the outcome of the June elections, while fears over Spain’s fragile banking sector 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.
The yield on Spanish 10-year government bonds climbed to 6.50% earlier, up from 6.34% on Friday.
Elsewhere, the pound was marginally higher against the U.S. dollar, with GBP/USD easing up 0.10% to hit 1.5682.
Trade looked likely to remain quiet on Monday, as markets in the U.S. were to remain closed for the Memorial Day holiday.
EUR/GBP hit 0.8037 during European morning trade, the session high; the pair subsequently consolidated at 0.8017, gaining 0.34%.
The pair was likely to find support at 0.7979, Friday’s low and a seven-day low and short-term resistance at 0.8060, the high of May 23.
Investor sentiment strengthened after an opinion poll indicated that Greek conservative party New Democracy may be able to form a government following the June 17 elections, after inconclusive election earlier this month sparked fears that the country could be forced out of the euro area.
But investors remained wary amid uncertainty over the outcome of the June elections, while fears over Spain’s fragile banking sector 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.
The yield on Spanish 10-year government bonds climbed to 6.50% earlier, up from 6.34% on Friday.
Elsewhere, the pound was marginally higher against the U.S. dollar, with GBP/USD easing up 0.10% to hit 1.5682.
Trade looked likely to remain quiet on Monday, as markets in the U.S. were to remain closed for the Memorial Day holiday.