Euro was relatively more upbeat in Monday trading. There was an absence of any key economic data and limited fundamental news flow but news out of Spain over the weekend helped boost the single currency.
EURUSD is up 0.3 percent on the day and trading within Friday’s range, between $1.3010 – $1.3080. On the month so far the pair has been trading broadly within a $1.28 to $1.32 range.
Results of the Spanish regional elections on Sunday were a positive boost to the euro. Prime Minister Mariano Rajoy won a majority in his home region of Galicia. This means his center-right People’s Party retains control of the region and holds a majority of seats in parliament.
Markets reacted positively to the results because is considered as a confidence boost for Rajoy’s government during a time of tough austerity measures gripping the country. Also it means that Rajoy can now make decisions more easily on whether to go ahead with requesting financial assistance from the EU.
Looking ahead the euro zone PMI figures are due this week, with the focus on the region’s growth outlook.
In other currencies, the Japanese yen was a major underperformer today, weighed down by domestic factors. Yen tumbled after the release of a downbeat regional economic assessment from the Bank of Japan in addition to weaker trade data.
Yen is down 0.6 percent against the dollar and fell to a 5-1/2 low against the euro in European trading session this Monday.
The British pound gained 0.3 percent since Friday’s close, with movement supported by broader market sentiment and optimism of a UK economic recovery following a string of improved UK economic data recently.