Investing.com -- EUR/USD rallied from a minor sell-off one session earlier, as issues related to the Greek Debt crisis and the timing of a potential interest rate hike by the Federal Reserve remained in focus.
The currency pair traded between 1.0975 and 1.1093, before settling at 1.1076, up 0.62%. Since surging more than 2.3% above 1.12 on the penultimate day of trading in June, though, EUR/USD is still down by more than 1.4% over the last week.
EUR/USD likely gained support at 1.0886, the low from June 1 and was met with resistance at 1.1350, the high from June 21.
In Athens, newly appointed Greek finance minister Euclid Tsakalotos outlined a comprehensive set of reforms the nation would adhere to in exchange for a three-year bailout through the European Stability Mechanism. The proposal includes: tax-related reforms, pension-related measures and potential debt relief. Tsakalotos is set to explain the proposal in greater detail on Thursday.
"Greece welcomes an opportunity to explore potential measures to be taken so that its official sector related debt becomes both sustainable and viable over the long term," Tsakalotos said.
Tsakalotos indicated that the release will provide officials from the European Central Bank, International Monetary Fund and European Commission with ample time to review the proposal before Sunday's emergency summit between Greece and its creditors in Brussels. While the meeting is viewed by many European officials as Greece's last opportunity to remain in the euro, it will come eight days before the cash-strapped nation owes a loan repayment of €3.5 billion to the ECB.
"The stark reality is that we have only five days left," European Council president Donald Tusk said in a news conference on Tuesday night. "Until now I have avoided talking about deadlines, but tonight I have to say loud and clear that the final deadline ends this week."
When the Fed released the minutes from its FOMC June meeting on Wednesday afternoon, they showed that the U.S. central bank appeared concerned last month that there would not be a deal between Greece and its creditors at the time of the meeting. Expressing worries that the Greek issues could spill over into European markets and U.S. financial markets, the Fed opted to take a cautious approach on the timing of its first interest rate hike in nearly a decade.
In addition, the FOMC said it would like to see additional evidence that the U.S. economy and labor markets are improving, as well as indications that inflation is moving toward its long-term targeted goal of 2% before it raises its benchmark Federal Funds rate.
“While participants generally saw the risks to their projections of economic activity and the labor market as balanced, they gave a number of reasons to be cautious in assessing the outlook,” the minutes said.
Yields on Italian and Spanish 10-Year bonds were relatively flat, falling four and five basis points to 2.21 and 2.22% respectively. The lack of movement may ease fears of the effects of contagion if Greece leaves the euro.
Meanwhile, yields on U.S. 10-Year Treasuries fell slightly by two basis points to 2.201% less than an hour after the Federal Reserve released the minutes. Earlier, yields reached an intraday high of 2.256% ahead of the release.
The U.S. Dollar Index, which measures the strength of the greenback versus a basket of six other major currencies, fell 0.71% to 96.39. On Tuesday, the dollar gained 0.62% to reach a monthly-high at 97.45.