Commodity News
HeadLine : Euro ticks higher in Asia as Greece referendum in focus
Date : Jul 3 2015
The euro ticked slightly higher on Friday ahead of a weekend referendum on a international creditor bailout plan for Greece that polls suggest could be a close call.

EUR/USD traded at 1.1086, up 0.02%.

But before then, a light data day in Asia ahead of U.S. markets closed on Friday.

In Australia, the June AIGroup services index rose 1.6 points to 51.2.

"The improvement in services-industry conditions so far this year has been concentrated in consumer services. Increased housing-market activity and very low interest rates are now assisting retail and personal and recreational services - although consumer-confidence and household-income growth are still below par. For the more business-oriented services subsectors weak business confidence, an uncertain outlook and low private and public investment are still weighing on demand across a range of design, consulting, personnel and administrative services," AI Group Chief Executive Innes Willox said.

AUD/USD changed hands at 0.7637, up 0.07%, while USD/JPY traded at 123.06, down 0.02%.

Also in Australia at 1130 (0130 GMT) May retail sales data are due. The forecast is for retail sales up 0.5% month-on-month.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.01% at 96.27.

Overnight, the dollar remained broadly lower against a basket of other major currencies on Thursday, after the release of downbeat U.S. economic reports dampened expectations for a rate hike by the Federal Reserve in the near future.

The U.S. Commerce Department reported on Thursday that factory orders fell 1.0% in May, compared to expectations for a 0.5% decline. April’s figure was revised to a decline of 0.7% from a previously reported decline of 0.4%.

Earlier in the day, the Labor Department reported that the economy added 223,000 jobs in June, compared to expectations for jobs growth of 230,000. May’s figure was revised down to 254,000 from 262,000 previously.

The unemployment rate ticked down to 5.3% last month, from 5.5% in June. Economists had expected the jobless rate to decline to 5.4%.

A separate report showed that the number of individuals filing for initial jobless benefits in the week ending June 27 increased by 10,000 to 281,000 from the previous week’s total of 271,000. Analysts had expected initial jobless claims to fall by 1,000 to 270,000 last week.


The euro's gains were capped however, as Greek Prime Minister Alexis Tsipras on Wednesday urged Greeks to reject an international bailout deal in a referendum due to be held on July 5, souring hopes of any breakthrough.

Less than 24 hours before, Tsipras had written a conciliatory letter to creditors asking for a new bailout that would accept many of their terms.

On Wednesday Greece became the first developed country to default on the International Monetary Fund after its second bailout program expired late Tuesday. The IMF confirmed that the Greek government failed to make a scheduled €1.6 billion loan repayment.
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