WASHINGTON (dpa-AFX) - The dollar is trading lower against its major European rivals Wednesday afternoon after a 'major breakthrough' in talks between Eurozone finance ministers and Greece to unlock 10.3 billion euros in new bailout loans.
There was no U.S. economic data to drive the direction of trading Wednesday. However, durable goods orders, pending home sales, and consumer sentiment may attract attention in the coming days.
Federal Reserve Chair Janet Yellen is also scheduled to speak on Friday, potentially providing additional clues about the outlook for interest rates.
Greece's creditors agreed early Wednesday to release the next tranche of bailout funds and allowed debt relief after the International Monetary Fund relaxed its tough stance.
After the meeting in Brussels on Tuesday, Eurozone finance ministers welcomed the accord reached between Greece and the institutions that paved the way for the disbursement of EUR 10.3 billion bailout fund.
The decision to unlock the tranche of third bailout came after the Greek parliament approved unpopular austerity measures last Sunday.
The agreement contains a package of reforms to be implemented by Greece and an additional contingency mechanism. The latter will set additional reform measures in motion if the programme's agreed primary surplus target of 3.5 percent of GDP is at risk of being missed.
The Eurogroup also agreed on a set of measures to ensure the sustainability of Greece's public debt. Gross financing need should remain below 15 percent of GDP during the post programme period for the medium term and below 20 percent of GDP thereafter.
'We achieved a major breakthrough on Greece which enables us to enter a new phase in the Greek financial assistance programme,' Eurogroup President Jeroen Dijsselbloem said.
The dollar has fallen to around $1.1160 against the Euro Wednesday afternoon, from a high of $1.1127 this morning.
German business confidence strengthened more-than-expected to a 5-month high in May as companies were more satisfied with their current situation and turned noticeably optimistic regarding months ahead despite 'Brexit' fears, results of a key survey showed Wednesday.
The business climate indicator rose to 107.7 in May from a revised 106.7 in April, a monthly survey from the Ifo Institute showed. This was the highest reading since December 2015 and above the expected score of 106.8.
German consumer confidence is set to strengthen in June as the economy is expected to grow over coming months, survey data published by the research group GfK showed Wednesday. The forward-looking consumer sentiment index rose to 9.8 in June from 9.7 in May. It was forecast to remain unchanged in June.
The buck has extended yesterday's sharp losses against the pound sterling on Wednesday, dropping to over a 3-week low of $1.4710 from Tuesday's high of $1.4476. The 2-day drop was sparked by recent polls which showed a notable decline in support for a U.K. exit from the European Union, or a 'Brexit.'
The greenback climbed to an early high of Y110.447 against the Japanese Yen Wednesday, but has since retreated to around Y110.150.
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