Investing.com -- EUR/USD inched down on Thursday but remained above 1.12, as an emergency meeting in Brussels ended without a resolution in the Greek Debt crisis and the timing of a rate hike by the Federal Reserve remained in focus.
EUR/USD lost 0.001 or 0.02% to 1.1205, moving lower for the third time in four sessions. The euro is on pace to close the week down more than 1.3% against the dollar, after suffering one of its worst one-day declines of the year on Tuesday. In Thursday's session, the currency pair traded in a range of 1.1154 and 1.1227.
EUR/USD likely gained support at 1.1078, the low from June 3 and was met with resistance at 1.1411, the high from June 22.
In Brussels, the two sides in longstanding Greek Debt negotiations concluded talks on Thursday without reaching a deal. During the emergency two-day meeting, both sides presented revised proposals that could unlock critical stimulus aid to Greece thought to be necessary in order to avoid bankruptcy. The high-level talks included members of the European Central Bank, International Monetary Fund and European Commission.
The emergency negotiations could resume on Saturday, The Guardian reported.
“We shall continue our deliberations, the institutions are going to look again at the two documents - our documents and their own, there will be discussions with the Greek government, and we’ll continue until we find a solution,” Greece finance minister Yanis Varoufakis told reporters in Brussels.
The developments on Thursday had little impact on stocks in Greek banks. Greece is running out of time before it owes the IMF a bundled payment of EUR 1.5 billion on Tuesday.
Yields on Greek 10-Year bonds jumped 11 basis points to 10.51% following the subdued headlines. For the year, the government bond yields have surged 510 basis points. Yields on Germany 10-Year bunds rose two basis to 0.86%, while yields on U.S. 10-Year Treasuries gained four basis points to 2.41%, as the spread between the debt instruments slightly widened.
Also on Thursday, the U.S. Department of Commerce said consumer spending surged in May by 0.9%, the highest monthly gain in nearly six years and above expectations for a 0.7% rise. Bolstered by a 0.5% spike in personal income, the surge reflects an increase in consumer spending in auto purchases and retail goods. Consumer spending accounts for approximately two-thirds of economic activity throughout the U.S.
At the same time, the Commerce Department said its PCE price index rose by 0.3% for the month in line with consensus estimates from analysts. The index is up by 0.2% on a year-over-year basis. The Core PCE price index, which strips out volatile food and energy prices, inched up 0.1% from April. Over the last 12 months, however, the index is up 1.2%.
Last week, the Fed reiterated that it would like to see inflation move toward its long-term targeted goal of 2% before it institutes its first interest rate hike in more than a decade.
The The U.S. Dollar Index, which measures the strength of the greenback versus a basket of six other major currencies, ticked down 0.05% to 95.37. USD/JPY fell 0.16% to 123.65, moving lower for the second straight session. USD/CAD dropped 0.43% to 1.2329, paring most of Wednesday's gains.