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Forex - EUR/USD hits 1-week highs on new Greek bailout request

Published 07/09/2015, 02:33 AM
© Reuters.  Euro rises to 1-week peak vs. dollar as Greece requests new bailout
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Investing.com - The euro edged up to one-week highs against the U.S. dollar on Thursday, after Greece requested a new three-year bailout and as the minutes of the Federal Reserve's latest meeting pressure the greenback lower.

EUR/USD hit 1.1124 during late Asian trade, the pair's highest since July 1; the pair subsequently consolidated at 1.1104, rising 0.22%.

The pair was likely to find support at 1.0974, Wednesday's low and resistance at 1.1171, the high of July 1.

The euro found some support after Greece requested a new three-year bailout from its euro zone creditors and pledged some economic overhauls on Wednesday.

Whether European leaders accept Greece's request for more emergency loans at a crisis summit on Sunday will depend on whether Prime Minister Alexis Tsipras makes a drastic turnaround on pension cuts, tax increases and other austerity measures after five months of negotiations.

German Finance Minister Wolfgang Schäuble said that "the actual examination can only begin once the full package has been put on the table."

Elsewhere, the minutes of the Fed's June policy meeting showed that policy makers need to see more signs of a strengthening U.S. economy before raising interest rates.

In its June policy statement, the central bank had indicated that it was on track for at least one and perhaps a second rate increase later this year.

The minutes also pointed to concerns over Greece's financial problems, signaling that global market turmoil could derail the Fed's rate hike plans if contagion spreads.

The euro was steady against the pound, with EUR/GBP at 0.7208.

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