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Forex - EUR/USD holds gains as markets digest Greek vote

Published 01/26/2015, 08:06 AM
Euro remains moderately higher vs. dollar, Greece fears subside
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Investing.com - The euro held gains against the U.S. dollar on Monday, as markets digested news anti-austerity Syriza party swept to victory in elections in Greece, although concerns over the country's future in the euro zone still weighed.

EUR/USD hit 1.1374 during European afternoon trade, the session high; the pair subsequently consolidated at 1.1243, gaining 0.35%.

The pair was likely to find support at 1.1112, Friday's low and an 11-year low and resistance at 1.1374, Friday's high.

The single currency dropped to fresh 11-year lows against the dollar earlier, amid concerns over Syriza’s pledge to renegotiate the terms of Greece's €240 billion international bailout and reverse many of the austerity measures imposed by the European Union and International Monetary Fund.

The euro also remained under pressure after the European Central Bank unveiled a €1.2 trillion asset purchase program last week, aimed at combatting slowing growth and inflation in the euro area.

Earlier Monday, data showed that German business confidence improved to the highest level in six months in January, easing concerns over the health of the euro zone's largest economy.

The German research institute, Ifo said its Business Climate Index rose to 106.7 this month, above forecasts for 106.3 and up from a reading of 105.5 in December.

The euro was also higher against the pound, with EUR/GBP adding 0.23% to 0.7488, off Friday's seven-year lows of 0.7401.

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