EUR/USD slows down, but holds above 1.1100

FXStreet (Córdoba) - EUR/USD held above the 1.1100 level, barely unaffected by the latest batch of disappointing US data, but broadly supported by hopes of a Greek deal around the corner, even after Eurogroup President Dijsselbloem said such an agreement was still far away.

EUR/USD climbed almost 300 pips throughout the day and scored its highest level since May 22 at 1.1193 in recent dealings. The pair faltered ahead of the 1.12 mark and retraced some gains with Dijsselbloem comments. At time of writing, EUR/USD is trading at 1.1120, recording a 1.79% gain on the day.

Optimism Greece could reach a deal with lenders has supported the euro on Tuesday following yesterday’s meeting between Merkel, Hollande, Juncker, Lagarde and Draghi in Berlin. There were speculations the leaders would draft a proposal for Greece, but a government official said the Hellenic country hasn’t received an agreement plan from the institutions.

On the data front, US data came in the soft side. Factory orders dropped 0.4% in April versus expectations of a flat reading, while the IBD/TIPP Economic Optimism index came in at 48.1, below the 49.8 of consensus.