Midday trade in New York: Euro upside capped by Greek debt issues

The euro turned higher against the dollar on Wednesday in volatile trade, boosted by firmer stocks and commodities, although its near-term outlook was clouded by Greece's unresolved debt situation. A lack of new negative headlines on Greece encouraged investors to buy back risky assets, some analysts said. And while market participants were still worried about a Greek debt restructuring, it seemed investors were pricing in the move.
In midday New York trading, the euro was up 0.2 percent at $1.4267, although it faced a near-term hurdle at its 55-day moving average around $1.4290. The dollar index fell 0.1 percent to 75.300, pulling further away from a six-week high around 76.0 hit earlier in the week. The dollar traded slightly down against the yen at 81.35 yen, but off its lows as benchmark 10-year US Treasury yield inched up from its lowest in five months.