Dollar broadly higher after U.S. data; Greek PM says 'No' vote not equal to Grexit

On Wednesday the dollar remained broadly higher against its peers supported by upbeat U.S. jobs and manufacturing data. Investors meanwhile watch the situation in Greece.

The Institute for Supply Management said on Wednesday its index of purchasing managers rose to 53.5 last month from 52.8 in May. Economists had expected a more modest uptick to 53.1.

What’s more, a gauge that measures employment levels and hiring intentions jumped 3.8 points to 55.5%. This is the highest since December and suggests manufacturers may boost hiring after hardly any increase in jobs since January.

Payroll processing firm ADP reported on Wednesday that U.S. non-farm private employment rose by 237,000 last month, above expectations for an increase of 218,000.

The economy created 203,000 jobs in May, whose figure was upwardly revised from a previously reported increase of 201,000.

The government on Thursday will release the employment report a day early because of the July 4 holiday.

EUR/USD dropped 0.51% to trade at 1.1089.

In the meantime, Greece's Prime Minister Alexis Tsipras called upon Greeks to vote “no” in the referendum on Greece’s bailout due on Sunday, saying that “no” does not mean exit from the euro, but rather a strong stance to continue the negotiations toward a “sustainable solution” to the Greek debt.

“No does not mean rupture with Europe but return to Europe with values,” Tsipras said. Rumors that he has a secret plan for a Grexit if the “no” vote prevails are “lies” aimed at influencing the outcome of the referendum, he detailed.

Tsipras also tried to calm fears over recent capital controls, promising that salaries, pensions and bank deposits will be guaranteed.

He remained determined to hold a referendum on July 5, but added that he would be open to a new positive proposal coming out of Wednesday’s Eurogroup meeting.