Daily Afternoon Report 09/06/2015
The dollar pushed slightly higher against a basket of other major currencies in quiet trade today, as no major U.S. economic reports were expected throughout the day and investors continued to focus on Greek debt talks.
EURUSD dropped as investors also remained cautious after German Chancellor Angela Merkel warned Monday that “there isn’t much time left” to reach an agreement on a cash-for-reforms deal needed to unlock more financial aid before Greece runs out of money. Athens delayed a key debt payment to the International Monetary Fund on Friday, saying it would repay the money along with other payments due this month by the end of June. Athens submitted new proposals for economic reforms to the European Commission on Tuesday, fuelling hopes for a breakthrough that could unlock new funding before the country runs out of money.
Also today, data confirmed that the euro area economy grew 0.4% in the first three months of the year. But the Greek economy contracted 0.2% in the quarter, sending the country back into a recession.
Elsewhere, the pound was also lower after the Office for National Statistics said the U.K. trade deficit narrowed to £1.2 billion in April, the lowest since March 2014 from an upwardly revised £3.1 the previous month. Sterling also remained under pressure as concerns over the prospect of a possible British exit from the European Union weighed ahead of a referendum on EU membership due to being held before the end of 2017.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.28% at 95.49.