Forexpros – The euro pared back gains against the pound on Monday, as concerns over the outcome of weekend elections in Greece overshadowed relief over a deal to bailout Spain’s struggling banking sector.
EUR/GBP retreated from 0.8157, the pair’s highest since May 2, to hit 0.8091 during European morning trade, just 0.01% higher on the day.
The pair was likely to find support at 0.8016, the low of June 1 and resistance at 0.8155, the session high.
On Saturday, the European Union agreed to lend Spain as much as EUR100 billion that Madrid will use to recapitalize its banks.
But investors remained cautious as details of the Spanish bailout agreement remained unclear, with the exact amount Spain is to receive still be decided, after the results of independent banking audits are published later this month.
Meanwhile, uncertainty over the outcome of a Greek general election on June 17, which could determine the course of the country’s future in the euro zone, also weighed.
The euro also trimmed gains against the U.S. dollar and the yen, with EUR/USD up 0.64% to trade at 1.2596, off an earlier high of 1.2669, and EUR/JPY up 0.71% to trade at 100.15, after hitting a session high of 100.92 earlier.
Elsewhere Monday, markets shrugged off official data showing that Chinese inflation, industrial output and retail sales disappointed expectations in May, after unexpectedly strong import data eased concerns over a ‘hard landing’ in the world’s second largest economy.
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