Forexpros – The euro remained lower against the U.S. dollar on Monday, as sustained concerns over the debt crisis in the euro zone and a potential Greek exit from the monetary union continued to weigh on market sentiment.
EUR/USD hit 1.2749 during European afternoon trade, the daily low; the pair subsequently consolidated at 1.2761, falling 0.13%.
The pair was likely to find support at 1.2720, the low of May 15 and resistance at 1.2812, the high of May 21.
The euro found some support after a weekend summit of the Group of Eight nations saw leaders affirm that they want Greece to remain in the euro zone and pledge to take measures to shore up growth in their economies.
But investors remained cautious after leaders failed to reach an agreement on how to calm market turmoil stemming from the crisis in the region.
Markets were also jittery as uncertainty over the outcome of Greece’s June 17 elections sparked fears over the country’s ability to honor its financial commitments and its possible exit from the euro zone.
Meanwhile, concerns over the health of Spain’s banking sector also weighed, pushing the yield on Spanish 10-year bonds to 6.29% earlier.
Elsewhere, the euro was hovering just below a two-week high against the pound, with EUR/GBP dipping 0.07% to hit 0.8073.
Markets were looking ahead to a meeting between German Finance Minister Wolfgang Schaeuble and his newly appointed French counterpart, Pierre Moscovici, later in the day, as European Union leaders prepared for Wednesday’s summit meeting.
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