Investing.com - The euro remained moderately higher against the U.S. dollar in subdued trade on Monday, but gains were expected to remain capped as markets continued to focus on developments in Greece and demand for the greenback remained broadly supported.
Trading volumes were expected to remain light this week ahead of the New Year's holiday.
EUR/USD hit 1.2226 during U.S. morning trade, the session high; the pair subsequently consolidated at 1.2195, adding 0.11%.
The pair was likely to find support at 1.2132 and resistance at 1.2255, the high of December 25.
Markets were jittery as Greek Prime Minister Antonis Samaras said in a live broadcast in Athens that he will recommend parliamentary elections are held on January 25, almost 18 months before his coalition's term was due to end.
The announcement came as Samaras failed in his third attempt to persuade lawmakers to back his candidate for head of state, forcing the legislature’s dissolution.
Meanwhile, the dollar remained broadly supported after final data last week showed that U.S. gross domestic product rose 5.0% in the third quarter, exceeding expectations for a growth rate of 4.3% and up from 3.9% in the three months to June.
The strong data fuelled further optimism over the strength of the U.S. economic recovery and added to expectations for the Federal Reserve to raise interest rates next year.
The euro was also higher against the pound, with EUR/GBP up 0.23% to 0.7848.