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Forex - EUR/USD pares gains as second Greek vote ahead

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Forexpros - The euro pared gains against the U.S. dollar on Thursday, but remained well supported ahead of a Greek vote on legislation to implement the EUR28.4 billion, five-year austerity package approved in Wednesday's vote.

EUR/USD pulled back from 1.4521, the pair's highest since June 10 to hit 1.4471 during European early afternoon trade, still up 0.25% on the day.

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

The euro was boosted by a relief rally after the Greek parliament voted to accept the unpopular austerity package needed to secure a EUR12 billion tranche of bailout funds from the European Union and International Monetary Fund.

The single currency also found support as the European Central Bank indicated that it would raise interest rates again next week after official data showed inflation in June remained well above the bank's 2% target.

Eurostat said consumer prices in the 17 countries using the euro were 2.7% higher in June than a year earlier, unchanged from May. Economists had expected CPI to rise by 2.8% in June.

The euro was also higher against the pound, with EUR/GBP climbing 0.53% to hit 0.9035.

Later Thursday, the U.S. was to publish its weekly government report on initial jobless claims, as well as data on manufacturing activity in the Chicago region.

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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.

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