Investing.com - The euro was higher against the U.S. dollar on Monday, after weekend opinion polls in Greece indicated that pro-bailout party New Democracy was leading the polls ahead of a general election next month.
EUR/USD hit 1.2612 during late Asian trade, the pair’s highest since May 24; the pair subsequently consolidated at 1.2605, gaining 0.72%.
The pair was likely to find support at 1.2495, Friday’s low and an almost two-year low and resistance at 1.2687, the high of May 23.
Sunday’s opinion poll indicated that the conservative New Democracy party may be able to form a government following the June 17 elections, easing investor concerns over a possible Greek exit from the euro zone, after elections in early May resulted in a political deadlock.
But the euro remained vulnerable as concerns over the health of Spain’s banking sector continued to weigh after Spain’s government announced Sunday that it was to recapitalize one of the country’s largest commercial lenders, Bankia.
The announcement sparked fresh fears that the rising cost of bank rescues could force Spain into seeking an international bailout.
The euro was also higher against the pound and the yen, with EUR/GBP up 0.44% to hit 0.8025 and EUR/JPY rising 0.37% to hit 100.09.
Trade looked likely to remain quiet on Monday, with some markets in Europe closed for holidays, while U.S. markets were to remain closed for the Memorial Day holiday.
EUR/USD hit 1.2612 during late Asian trade, the pair’s highest since May 24; the pair subsequently consolidated at 1.2605, gaining 0.72%.
The pair was likely to find support at 1.2495, Friday’s low and an almost two-year low and resistance at 1.2687, the high of May 23.
Sunday’s opinion poll indicated that the conservative New Democracy party may be able to form a government following the June 17 elections, easing investor concerns over a possible Greek exit from the euro zone, after elections in early May resulted in a political deadlock.
But the euro remained vulnerable as concerns over the health of Spain’s banking sector continued to weigh after Spain’s government announced Sunday that it was to recapitalize one of the country’s largest commercial lenders, Bankia.
The announcement sparked fresh fears that the rising cost of bank rescues could force Spain into seeking an international bailout.
The euro was also higher against the pound and the yen, with EUR/GBP up 0.44% to hit 0.8025 and EUR/JPY rising 0.37% to hit 100.09.
Trade looked likely to remain quiet on Monday, with some markets in Europe closed for holidays, while U.S. markets were to remain closed for the Memorial Day holiday.