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Forex - EUR/USD close to 3-week high after second Greece vote

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Forexpros - The euro was trading close to a three-week high against the U.S. dollar on Thursday, after Greece's parliament passed a second austerity law, removing the last obstacle to receiving the next tranche of aid from international lenders.

EUR/USD hit 1.4522 during early U.S. trade, the pair's highest since June 10; the pair subsequently consolidated at 1.4481, gaining 0.31%.

The pair was likely to find support at 1.4236, Tuesday's low and resistance at 1.4649, the high of June 9.

Greece's parliament passed a vote on the implementation of different parts of the EUR28.4 billion, five-year austerity package approved in Wednesday's vote, such as tax rises and the sale of state assets.

Earlier in the day, the euro trimmed gains after official data showed that German retail sales fell unexpectedly in May, while French consumer spending fell more-than-expected.

But the single currency remained supported as the European Central Bank indicated that it would raise interest rates again next week after official data released earlier showed that consumer price inflation in June remained well above the bank's 2% target.

The euro was also higher against the pound, with EUR/GBP rising 0.55% to hit 0.9037.

Also Thursday, the U.S. Labor Department said first time jobless claims declined by 1K to 428K last week. Analysts expected a decline to 420K.

A separate report showed that manufacturing activity in the Chicago area rose unexpectedly in June, posting 21 consecutive months of growth.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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