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Forex - EUR/USD remains moderately higher in thin trade

Published 07/03/2015, 09:57 AM
© Reuters.  Euro holds modest gains vs. dollar with eyes on Greek referendum
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Investing.com - The euro remained moderately higher against the U.S. dollar on Friday, as investors awaited the outcome of Sunday's Greek referendum and as trading volumes were thin as U.S. markets remained closed for the Independence Day Holiday.

EUR/USD hit 1.1118 during U.S. morning trade, the session high; the pair subsequently consolidated at 1.1098, adding 0.13%.

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.

Investors remained cautious after a last minute deal between Greece and the euro zone were quashed on Wednesday when 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.

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

Earlier Friday, official data showed that euro zone retail sales rose 0.2% in May, beating expectations for a 0.1% uptick, after a 0.7% gain the previous month.

Year-on-year, retail sales increased by 2.4% in May, more than the expected 2.3% rise, after a 2.2% gain in April.

The data came after Markit research group said that Germany's services purchasing managers' index ticked down to 53.8 this month from 54.2 in May, confounding expectations for an unchanged reading.

France's services PMI remained unchanged at 54.1 this month, in line with expectations.

The euro was also higher against the pound, with EUR/GBP up 0.15% to 0.7112.

In the U.K., Markit reported on Friday that the U.K. services PMI rose to 58.5 in June from 56.5 the previous month, beating expectations for an uptick to 57.4.

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