Investing.com - The pound was little changed against the dollar late Friday, but gained ground against the broadly weaker euro as uncertainty over Greece’s debt negotiations sapped investor demand for the single currency.
GBP/USD was at 1.5746 late Friday, almost unchanged for the day. EUR/GBP slid 0.3% to one-month lows of 0.7084.
Investors remained on the sidelines of currency markets amid uncertainty over whether Greece could reach an agreement with its international lenders in time to avert a default.
Greece’s bailout is due to expire on Tuesday, the same day that Athens is due to repay €1.6 billion to the International Monetary Fund, but without a rescue package in place Greece will almost certainly default.
In the week ahead, investors will be focusing on developments in Greece after Prime Minister Alexis Tsipras abandoned negotiations with creditors on Saturday and called for a referendum to be held on July 5 on the terms proposed by lenders for extending the country’s bailout program.
European finance ministers refused a request from the Greek government to extend the bailout program until after the referendum.
The European Central Bank decided Sunday to continue providing emergency liquidity assistance to Greece’s banks, but capped emergency funding at current levels. The ECB said it was monitoring the situation and stood ready "to reconsider its decision."
Greek officials were to hold talks later Sunday to discuss measures to avert a mounting crisis in the banking sector after deposit outflows accelerated over the weekend.
Market participants will also be looking ahead to the latest U.S. employment report, due for release one day ahead of schedule on Thursday, for signs of improvement in the labor market, which the Federal Reserve has said is a key factor in deciding when to start hiking interest rates.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, June 29
The U.K. is to publish data on net private lending.
Later Monday, the U.S. is to publish a report on pending home sales.
Tuesday, June 30
The U.K. is to publish data on the current account as well as the final reading of first quarter economic growth.
The U.S. is to release data on consumer confidence.
Wednesday, July 1
The U.K. is to release a report on manufacturing activity.
The U.S. is to release a report on ADP nonfarm payrolls and later in the day the Institute of Supply Management is to release data on manufacturing activity.
Thursday, July 2
The U.K. is to release a report on construction activity.
The U.S. is to release the closely watched nonfarm payrolls report, and data on wage growth one day early, ahead of the Independence Day holiday. U.S. data on initial jobless claims and factory orders is also due for release.
Friday, July 3
The U.K. is to release a report on service sector activity.
U.S. markets are to remain closed for the July 4th holiday.