Daily Afternoon Report 24.06.2015

The dollar trimmed losses against a basket of other major currencies on Wednesday, after data showed that the U.S. economy contracted less than initially estimated in the first quarter, while investors continued to focus on Greek debt talks.

The Commerce Department reported on Wednesday that gross domestic product contracted at a rate of 0.2% in the three months ending March 31, in line with expectations and compared to a previous estimate of a 0.7% contraction.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.14% at 95.48, off earlier lows of 95.13.

EUR/USD was up 0.20% to 1.1190, pulling back from highs of 1.1235 hit earlier in the session.

Market sentiment was hit after a Greek government official said Prime Minister Alexis Tsipras told associates that some of Greece’s latest proposed reform measures had not been accepted by creditors.

The remarks came as Tsipras departed for Brussels to meet with the heads of the European Commission, the European Central Bank and the International Monetary Fund.

Earlier Wednesday, Greece’s economy minister, George Stathakis, said “two or three” areas still needed to be addressed, but added that he was confident a deal would be reached by the time EU leaders meet on Thursday.

Greece has to repay € 1.6 billion to the IMF on June 30 or face going into default, which could trigger the country’s exit from the euro area.

The single currency shrugged off data earlier Wednesday showing that German business confidence fell to a four-month low in June, dampening optimism over the health of the euro zone’s largest economy.

In a report, the German research institute, Ifo said its Business Climate Index fell to 107.4 this month, down from a reading of 108.5 in May and missing forecasts for 108.1.

The pound was steady, with GBP/USD at 1.5736.

Elsewhere, the dollar was little changed against the yen and the Swiss franc, with USD/JPY at 123.99 and with USD/CHF at 0.9337.

The Australian dollar was lower, with AUD/USD down 0.12% to 0.7727, while NZD/USD rose 0.27% to trade at 0.6873.

USD/CAD held steady at 1.2324.