The euro is enjoying the post-Greek vote European market reaction and gathered firm gains versus the US dollar to trade at session highs.
Frankfurt - Following a muted early-morning European trading session, the euro managed to test the psychological threshold of $1.10 on the back of Greece's parliamentary approval to new reforms.
Greece's parliament on Thursday approved by a wide margin a second set of economic reforms demanded by its international creditors, opening the way to detailed negotiations on a third bailout for the country.
The euro gathered gains and jumped briefly above the $1.10 handle, trading 0.54% higher at $1.0986 later on.
"It is increasingly becoming apparent that the Greek Prime Minister, Alexis Tsipras wants to crack on with making the best of a bad job, and agree the terms of a new bailout, so that he can then call new elections sometime in September in order to refresh his mandate with the voters, as well as sell the positives of the so called €35 billion EU growth program, agreed with the EU Commission," Michael Hewson from CMC Markets UK said on Thursday.
In the US session ahead, traders will focus on weekly US jobs data. Moreover, the earnings season in the US will get a lot of the attention.
In a very quiet week on the EU macro front, the divergence in the monetary policies of the European Central Bank and Federal Reserve remains in focus.
Technical analysis
In Tuesday's trading session EUR/USD booked a significant gain which represented one of the best percentage gainers of the last three months.
Despite the spike up investors and traders remain cautious and bearishly orientated. Very likely the spike will be sold off once again in coming days or weeks back to the support and recent swing low of $1.0800.
Right now the cross is heading toward a very heavily previously traded zone with lots of retests from the upside. At these levels EUR/USD experienced the big turn up and rebounded during the last month as the Greece crisis was dominating the market and investors' psychology.
