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Dollar trims losses but remains under pressure

Published 07/03/2015, 08:17 AM
© Reuters.  Dollar eases off session lows but remains lower in quiet trade
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Investing.com - The dollar trimmed losses against a basket of other major currencies on Friday, but the greenback remained under pressure as investors awaited the outcome of Sunday's referendum in Greece.

Trading volumes were expected to remain thin with U.S. markets closed for a national holiday

EUR/USD was up 0.10% to 1.1095.

A last minute deal between Greece and the euro zone were quashed on Wednesday after Greek Prime Minister Alexis Tsipras urged voters to reject the terms of an international bailout deal.

Greek voters are due to decide on Sunday whether to accept terms proposed by the institutions overseeing the country’s now-expired bailout, the European Central Bank, the International Monetary Fund and the European Commission, or reject them.

Greece became the first developed country to default on the IMF after its second bailout program expired late Tuesday.

Earlier Friday, official data showed that euro zone retail sales rose 0.2% in May, beating expectations for a 0.1% uptick, after a 0.7% gain the previous month.

Year-on-year, retail sales increased by 2.4% in May, more than the expected 2.3% rise, after a 2.2% gain in April.

The data came after Markit research group said that Germany's services purchasing managers' index ticked down to 53.8 this month from 54.2 in May, confounding expectations for an unchanged reading.

France's services PMI remained unchanged at 54.1 this month, in line with expectations.

The pound was also higher, with GBP/USD up 0.09% to 1.5623.

Markit earlier reported that the U.K. services PMI rose to 58.5 in June from 56.5 the previous month, beating expectations for an uptick to 57.4.

Elsewhere, the dollar was lower against the yen, with USD/JPY down 0.13% to 122.92 and steady against the Swiss franc, with USD/CHF at 0.9432.

The Australian and New Zealand dollars were weaker, with AUD/USD down 1.42% at 0.7524 and with NZD/USD retreating 0.45% to 0.6690, re-approaching Thursday\'s five-year trough of 0.6662.

The Australian Bureau of Statistics earlier reported that retail sales rose by 0.3% in May, disappointing expectations for an increase of 0.5%, after a 0.1% slip the previous month.

Meanwhile, USD/CAD rose 0.31% to trade at 1.2580, below the previous session's two-and-a-half month peak of 1.2633.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.09% at 96.19.

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