Investing.com - The euro traded traded higher against the U.S. dollar Friday, bouncing from 22 month lows, as Italian Prime Minister Mario Monti said Greece will likely remain a member of the euro zone and Germany can be persuaded to support the common good of Europe.
EUR/USD bounced from 1.2519, the pair’s lowest since July 6, 2010, to hit 1.2580 during U.S. morning trade, moving 0.40% higher on the session
The pair was likely to find support at 1.2518 and resistance at 1.2603, the session high.
Lending support to the single currency, Italian Prime Minister Mario Monti stated, during a television interview, “Europe can have euro bonds soon. Germany has an interest in ensuring no country leaves the euro, while Greece will probably remain in the 17 – nation currency region even as anything can happen.”
The EU summit ended yesterday with a plea to Greek voters to elect a pro - austerity governement on June 17 in order to keep the troubled island nation in the euro zone.
However, German Chancellor Angela Merkel left open a potential compromise on debt sharing in the euro area lifting hopes of cooperation.
Euro area finance ministers do not plan on meeting again until after the Greek elections next month, which potentially will determine Greek’s future in the euro zone. The Greek June election was called after a May 6 vote left no party able to form a government, as voter sent the anti-bailout Syriza party to second place.
Elsewhere, the euro traded higher against the pound and the yen, with EUR/GBP climbing 0.24% to hit 0.8017 and EUR/JPY matching the advance up 0.24% to hit 100.00.