Forexpros – The euro rose to a one-month high against the U.S. dollar on Monday, as highly anticipated elections in Greece resulted in the victory of pro-bailout parties, easing concerns over the risk of a potential Greek exit from the euro zone.
EUR/USD hit 1.2748 during late Asian trade, the pair’s highest since May 22; the pair subsequently consolidated at 1.2709, climbing 0.56%.
The pair was likely to find support at 1.2641, the low of May 18 and resistance 1.2793, the high of May 18.
The euro found support as political parties supporting Greece’s international bailout were to begin forging a government on Monday, after an election victory over radical leftists staved off the prospect of the debt-laden country leaving the euro zone.
Conservative New Democracy leader Antonis Samaras called for broad support after winning Sunday’s election over the radical Syriza party, which had threatened to cancel the aid deal in defiance of the country’s lenders.
Gains were limited however, as concerns over the handling of Greece’s financial crisis persisted while all eyes turned to Germany for any possibility of concessions on the harsh budgetary restrictions imposed on Athens.
Elsewhere, the euro was higher against the pound with EUR/GBP rising 0.55%, to hit 0.8093.
Later in the day, a G-20 summit was due to begin, amid hopes it could produce fresh measures to combat the crisis in Europe.
In a statement, G-20 leaders said it was in “all our interests” for Greece to remain in the euro zone while respecting its international bailout commitments.