Investing.com - The euro remained higher against the U.S. dollar on Monday, as growing hopes that Greece will not leave the euro zone supported the single currency after opinion polls showed that pro-austerity party New Democracy was gaining popularity among voters.
EUR/USD hit 1.2625 during European afternoon trade, the pair’s highest since May 23; the pair subsequently consolidated at 1.2584, climbing 0.54%.
The pair was likely to find support at 1.2514, the high of May 24 and resistance at 1.22687, the high of May 23.
The euro found support after opinion polls on Sunday showed that Greece's conservative party New Democracy swung into first place ahead of June 17 elections, as the country's socialists claimed that European leaders are warming to the idea that bailout terms for Athens should be softened to ease pressure on the economy.
Investors remained cautious however, amid uncertainty over the outcome of the upcoming Greek elections, while fears over the health of Spain’s banking sector and the country’s rising borrowing costs 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.
Earlier in the day, Spain’s Treasury auctioned the full targeted amount of EUR3.5 billion of two-year bonds, but the yield climbed to 4.03%, up sharply from 3.35% at a similar auction in April.
Meanwhile, the yield on Spanish 10-year government bonds climbed to 6.50% on Monday, up from 6.34% on Friday.
Elsewhere, the euro was also higher against the pound with EUR/GBP adding 0.29%, to hit 0.8013.
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 1.2625 during European afternoon trade, the pair’s highest since May 23; the pair subsequently consolidated at 1.2584, climbing 0.54%.
The pair was likely to find support at 1.2514, the high of May 24 and resistance at 1.22687, the high of May 23.
The euro found support after opinion polls on Sunday showed that Greece's conservative party New Democracy swung into first place ahead of June 17 elections, as the country's socialists claimed that European leaders are warming to the idea that bailout terms for Athens should be softened to ease pressure on the economy.
Investors remained cautious however, amid uncertainty over the outcome of the upcoming Greek elections, while fears over the health of Spain’s banking sector and the country’s rising borrowing costs 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.
Earlier in the day, Spain’s Treasury auctioned the full targeted amount of EUR3.5 billion of two-year bonds, but the yield climbed to 4.03%, up sharply from 3.35% at a similar auction in April.
Meanwhile, the yield on Spanish 10-year government bonds climbed to 6.50% on Monday, up from 6.34% on Friday.
Elsewhere, the euro was also higher against the pound with EUR/GBP adding 0.29%, to hit 0.8013.
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.