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Forex - EUR/USD rallies over 1% to fresh 1-1/2 week highs

Published 07/10/2015, 10:01 AM
© Reuters.  Euro jumps higher vs. dollar as Greece moves closer to bailout deal
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Investing.com - The euro rallied over 1% to fresh one-and-a-half week highs against the U.S. dollar on Friday, as signs of progress on the Greek debt front boosted demand for the single currency.

EUR/USD hit 1.1215 during U.S. morning trade, the pair's highest since June 30; the pair subsequently consolidated at 1.1175, jumping 1.25%.

The pair was likely to find support at 1.1031, the session low and resistance at 1.1245, the high of June 30.

The euro strengthened broadly after the Eurogroup described Greece's latest reform proposals aimed at securing a vital third bailout as "thorough".

Eurogroup President Jeroen Dijsselbloem said a "major decision... whichever way" could now be made at a euro zone finance meeting on Saturday.

Late Thursday, the Greek government offered to make painful spending cuts and hike taxes, in a last-ditch request to win one more bailout from Europe before the country descends into bankruptcy.

Athens was seeking at least €50 billion over the next three years. In exchange, the government presented a number of austerity measures that were said to total between €12 billion and €13 billion - significantly more than Greece’s previous commitments.

Greek Prime Minister Alexis Tsipras was set to put the reforms to a vote in parliament later Friday.

The euro was also higher against the pound, with EUR/GBP gaining 0.39% to 0.7204.

In the U.K., the Office for National Statistics reported on Friday that the trade deficit narrowed to £8.00 billion in May from £9.39 billion in April, whose figure was revised from a previously estimated deficit of £8.56 billion.

Analysts had expected the trade deficit to widen to £9.70 billion in May.

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