IForex Daily : July 10, 2014

 | Jul 10, 2015 04:55AM ET

The Greek government has submitted economic reform proposals to try to secure a further bailout from its creditors, eurozone. The measures include tax rises, pension reforms, privatisation and spending cuts, worth up to €13 billion according to the Guardian. On Friday, the Greek parliament will vote on Mr Tsipras' proposals. In exchange for the adoption of the austerity measures, Greece could receive approximately €50 billion in short-term funding needed to avoid bankruptcy. The plan will be then considered by eurozone finance ministers on Saturday, and by EU leaders at a summit in Brussels on Sunday. Following the events, the euro gained in early trading on Friday, as investors seem optimistic that a bailout deal will finally be reached. On Thursday, the dollar remained higher against most currencies, even after data initial jobless claims for the week ending July 4 increased by 15,000 reaching the highest level since February when analysts had expected a drop by 7,000. For today, Canada is to publish its monthly employment report while Fed Chair Janet Yellen is to speak at an event in Cleveland.

EUR/USD

The euro recovered sharply along with the DAX on Friday, as the Greek government has managed to submit economic reform proposals some hours before its deadline and ahead of Sunday's summit of EU leaders in Brussels where investors appear optimistic that a deal could be reached. The EUR/USD traded close to 1.11 level receiving additional support from weak employment data from the U.S., as the Labor Department announced initial jobless rising to the highest level since February. Investors will more likely remain on the sidelines on Friday waiting for the outcome of the Sunday EU summit in Brussels, while later in the day, a closely watched speech by Fed Chair Janet Yellen is due to take place in Cleveland.