Investing.com -- The euro fell slightly against the dollar on Monday on a day of choppy trading, in spite of the clearest indication in months of an imminent deal in the plodding, drawn out Greek Debt negotiations.
EUR/USD closed Monday's session down 0.0026 or 0.24% to 1.1334, as Monday's emergency summit of European Union leaders concluded in Brussels. The currency pair fluctuated between 1.1313 and 1.1410 on the first day of trading this week. Since spiking more than 1.7% on June 8, EUR/USD has remained relatively stable closing less than 1% in a positive or negative direction on 12 consecutive sessions.
The pair likely gained support on Monday at 1.1080, the low from June 8 and was met with resistance at 1.1438, the high from June 18.
In Brussels, Greece presented a broad, comprehensive proposal to its international creditors, which reportedly included plans to raise the nation's retirement age to 67 and impose increases to Value Added Taxes on electricity. In addition, Greece reportedly moved closer to agreeing to creditors' demands for a target budget surplus of 1% for this year, 2% next year and up to 3% in 2017, BBC reported.
Giorgos Stathakis, Greece's economy minister, also told the BBC that his nation's new proposal includes: a new corporate tax, a new tax on the wealthy and some other increases on VAT taxes. The developments stoked optimism among participants that a deal could be reached at a potential euro group meeting on Thursday.
"We will work very hard in the next few days, the institutions with the Greek government, to get that deal this week," said Netherlands finance minister Jeroen Dijsselbloem, the head of the euro group of finance ministers.
Reports also indicate that any potential deal will not include debt relief for Greece, as well as comprehensive pension cuts. Greece prime minister Alexis Tsipras held a series of talks with a host of European Union leaders, as well as European Central Bank head Mario Draghi and International Monetary Fund head Christine Lagarde before Monday night's emergency summit.
A temporary deal could unlock critical aid deemed necessary for Greece to stave off bankruptcy ahead of a EUR 1.5 loan repayment due to the IMF on June 30. At the same time, the final €7.2 billion tranche of a €240 billion bailout could expire if Greece doesn't reach an accord by the end of the month.
Stocks throughout Europe rose sharply on Monday in response to the encouraging reports. The German Dax index closed up nearly 4%, while a host of Italian banks ended Monday up 5% on the session. Italy could be threatened by contagion throughout the euro zone if Greece defaults on its debt and leaves the euro.
News of a potential breakthrough also spilled over into the U.S. markets, as stocks on the major indices all closed up by more than 0.5%. The NASDAQ Composite index continued its recent surge, jumping 36.97 or 0.72% to 5,153.97.
Yields on U.S. 10-Year Treasuries soared 11 basis points to 2.37%, but the spread between U.S. and German 10-year bonds condensed, as yields on German bunds jumped 13 basis points to 0.88.
Elsewhere, USD/JPY gained 0.48% to 123.37, while USD/CAD rose 0.35% to 1.232.