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Forex - EUR/USD almost unchanged as focus turns to Greek vote

Published 07/03/2015, 02:17 AM
© Reuters.  Euro holds steady vs. dollar ahead of Greece referendum
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Investing.com - The euro was almost unchanged against the U.S. dollar on Friday, as investors remained cautious ahead of the weekend's Greek referendum on whether or not the country's should accept its creditor's bailout terms.

EUR/USD hit 1.1100 during late Asian trade, the session high; the pair subsequently consolidated at 1.1093.

The pair was likely to find support at 1.1032, the low of July 1 and resistance at 1.1171, the high of July 1.

Hopes for 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.

Tsipras has said a vote against the proposals would give him a stronger mandate to agree a third bailout Greece’s creditors. However, European leaders have said the referendum is ultimately a vote on whether to remain in the euro zone.

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

Meanwhile, sentiment on the dollar remained vulnerable after a string of disappointing U.S. data on Thursday fuelled uncertainty over the timing of a rate hike.

The U.S. Commerce Department reported on Thursday that factory orders fell 1.0% in May, compared to expectations for a 0.5% decline.

Separately, the Labor Department reported that the economy added 223,000 jobs in June, compared to expectations for jobs growth of 230,000, although the unemployment rate ticked down to 5.3% last month, from 5.5% in June.

Data also showed that the number of individuals filing for initial jobless benefits in the week ending June 27 increased by 10,000 to 281,000, compared to expectations for a 1,000 fall.

The euro was steady against the pound, with EUR/GBP at 0.7105.

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