Euro Recovers On Reports Of Greek PM Tsipras Reconsidering Junker's Proposal
June 30 2015 - 6:10AM
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The euro came off from its early lows against the other major
currencies in European deals on Tuesday, as a media report
indicated that Greek Prime Minister Alexis Tsipras is examining the
latest aid proposal made by European Commission President
Jean-Claude Juncker.
According to Greek daily Kathimerini, Greek PM's office
intimated Brussels that they are working on new proposal of Junker
which included debt relief in October and changes in the EKAS
supplement (for low-income Greeks)
The offer, which was published on Sunday, requires the Greek PM
to pledge "Yes" campaign for the planned July 5 referendum, while
conveying a written acceptance of the proposed plan to the lenders
today.
Meanwhile, the European stocks are trading in a negative
territory, amid uncertainty about the future of Greece in euro
area, after Greece said that it won't make the 1.6 billion euro
debt payment to the International Monetary Fund due today.
In economic front, the flash data from Eurostat showed that
Eurozone inflation slowed slightly in June after accelerating in
May.
Inflation eased to 0.2 percent in June, in line with forecast,
from 0.3 percent in the prior month.
Another report from Eurostat showed that the unemployment rate
remained unchanged at 11.1 percent in May. This was the lowest rate
recorded in the euro area since March 2012. It came in line with
expectations.
The currency drifted lower in the Asian session, due to Greece
debt default fears.
The euro bounced off to 1.1205 against the greenback, 137.24
against the yen and 0.7126 against the pound, from its early lows
of 1.1133, 135.87 and 0.7081, respectively. The euro ended Monday's
trading at 1.1234 against the greenback, 137.65 against the yen and
0.7139 against the pound.
The euro was trading at 1.0414 against the franc, moving away
from its previous low of 1.0371. The pair was valued at 1.0391 at
yesterday's close.
Looking ahead, Canada GDP for April, U.S. S&P/Case-Shiller
home price index for April, U.S. Chicago PMI and U.S. consumer
confidence, both for June, are set to be published in the New York
session.
At 7:00 am ET, Bank of England Chief Economist Andy Haldane is
expected to speak at the Open University in London.
An hour later, European Central Bank Governing Council member
Ewald Nowotny will give a keynote speech at "Raiffeisen Bank
International-Summer Talk" in Vienna.
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