Technical Bias: Bullish
- EURUSD reaches highest level since mid-May before consolidating around 1.13.
- Greece preparing counter-proposal on a bailout deal to creditors, according to reports.
- US jobless claims remain below 300,000 for 13th straight week
The EURUSD continued its upward ascent on Thursday, reaching a daily high of 1.1385 in the European session before settling around 1.13 as investors awaited Greece’s counter-offer on a bailout deal to creditors.
The EURUSD advanced 0.2 percent to 1.1293 after reaching its highest level since mid-May. The pair faces near-term support at 1.1230, the daily low, and resistance at 1.1385, the daily high.
Greece Bailout Deal Under Construction
The single currency has gained 3 percent against its US counterpart this week, fueled by optimism about a potential bailout deal between Greece and its troika of creditors. The troika submitted a final proposal to the Greek government on Tuesday morning. However, the far-left government of Prime Minister Alexis Tsipras appears to have rejected the deal and is in the process of finalizing a counter proposal.
According to officials close to the talks, both sides saw “some convergence” on a few key points, but remained far apart on other details. The International Monetary Fund is owed more than €300 million from Greece on Friday.
US Jobless Claims Drop
US jobless claims declined more than forecast last week and remained below 300,000 for the thirteenth consecutive week, adding further evidence of a tighter labour market.
The number of Americans filing for first-time unemployment benefits fell by 8,000 to a seasonally adjusted 276,000 in the week ending May 30, the Labor Department reported on Thursday. The four-week average for jobless claims increased by 2,750 to 274,750, official data showed.
On Wednesday payrolls processor ADP said the US private sector added 201,000 jobs in May. The Labor Department on Friday is expected to show the creation of around 220,000 jobs in May.