Investing.com -- EUR/USD suffered mild losses rallying late in Thursday's session, after Greece offered major concessions to its international creditors in a last-ditch effort to remain in the euro.
The currency pair traded in a broad range between 1.0991 and 1.1125, before settling at 1.1034, down 0.34% on the session. EUR/USD has see-sawed over the last week, closing in an opposite direction from the preceding session on each of the last six trading days. For the month of July, the euro is down approximately 0.9% against its American counterpart.
EUR/USD likely gained support at 1.0917 the low from July 6 and was met with resistance at 1.1171 the high from July 1.
On Thursday evening, Greece presented a signed copy of an emergency bailout to its troika of creditors three hours before the expiration of a midnight deadline. Under the new proposal, Greece agreed to a strict package of reforms and spending cuts worth up to €13 billion, according to the Guardian. In exchange for the adoption of the austerity measures, the cash-strapped nation could receive approximately €50 billion in short-term funding needed to stave off bankruptcy. The proposal reportedly also includes modest debt-relief for the Mediterranean state, ahead of key repayments owed to the European Central Bank and International Monetary Fund over the next several weeks.
European council president Donald Tusk has advocated for the inclusion of debt sustainability as a provision of the agreement.
The Greek Parliament is expected to approve the proposal on Friday before prime minister Alexis Tsipras heads to Brussels for an emergency summit over the weekend. Tsipras has also called for a meeting of Syriza party lawmakers at 0600 BST on Friday. Officials from the ECB, IMF and European Commission will now assess the revised plan ahead of the extraordinary summit.
During a frenzied week, Germany chancellor Angela Merkel has repeatedly insisted that a haircut or write-off on Greece's substantial debt obligations should remain off the negotiating table. Meanwhile, Tsipras communicated over the phone with U.S. president Barack Obama earlier in the week in an effort to convince Merkel and other top leaders from the euro zone to work feverishly to reach a deal.
Greece will likely lose all emergency assistance from its euro creditors if it's unable to meet a €3.5 billion obligation to the ECB on July 20. In such a case, a Greek departure from the euro will likely increase exponentially.
Currency traders will also await a speech by Federal Reserve chair Janet Yellen on Friday for clearer indications on how a potential deal could impact the global markets. When the Federal Open Market Committee released the minutes from its June meeting on Wednesday, it appeared concerned that a lack of progress in Greek talks could constrain financial markets in the U.S. and the rest of Europe. As a result, the FOMC decided to proceed cautiously on the timing of its first interest rate hike in nearly a decade.
The U.S. Dollar Index, which measures the strength of the greenback versus a basket of six other major currencies, gained 0.20% to 96.67, nearing a monthly-high.