The euro continued its advance against the US dollar on Monday after Portugal’s Prime Minister Pedro Coelho said he would stick to the bailout program for the country.
EUR/USD hit a new session high at 1.3191 at 10:25 GMT, the highest point since July 11th, after which consolidation followed at 1.3168, still up by 0.18% for the day. Support was expected to be received at July 19th low, 1.3088, while resistance was to be encountered at July 11th high, 1.3205.
Portugals Prime Minister Pedro Passos Coelho’s government received the support of the head of state to stay in office until its term ends in 2015, as President Anibal Cavaco Silva ruled out early elections, which would obstruct the completion of the 78-billion EUR bailout plan. Portugal has 11 months left to exit its European Union-led bailout plan, Bloomberg reported. Prime Minister Coelho is backed by his Social Democratic Party and the smaller conservative CDS party, which together have a majority of seats in the parliament.
Upon resolving the above mentioned matter the single currency received support, while the yield on Portuguese 10-year bonds decreased to 6.4% from 6.92% at the close of trading Friday.
Meanwhile, during the weekend finance ministers and central bankers from the G-20 group said, that future changes to monetary policy should be “carefully calibrated and clearly communicated”, so that the United States and Japan not to cause transnational disturbances, when beginning a pare back of their stimulus.
Elsewhere, the euro decreased in value against the British pound, as EUR/GBP pair erased 0.20%, trading at 0.8590 at 12:22 GMT. In addition, EUR/JPY cross was also down by 0.30%, trading at 131.53 at 12:24 GMT.
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