Summary Despite the strong US retail sales data, the dollar's gain was small.
WASHINGTON (AFP) - The US dollar crept higher Thursday in a market on edge over troubled Greek negotiations with official creditors.
US data showing a rebound in retail sales in May, especially on cars, also supported the greenback as evidence that consumers were opening up pocketbooks.
The yen eased up after three days of gains, including Wednesday s spike after the governor of the Japanese central bank said further declines in the currency were "unlikely."
Despite the strong US retail sales data, the dollar s gain was small -- about 0.6 percent to $1.1260 per euro -- amid a push into Treasuries.
"Many investors anticipated a stronger move given the sharp rise in retail sales," said Kathy Lien of BK Asset Management.
Lien said the data nevertheless added to the hawkish case for the Federal Reserve, which holds a policy meeting on Tuesday and Wednesday, to push ahead with a rate increase sooner rather than later.
She added that the lack of progress in talks between Greece and its official creditors, with the creditors toughening their stance, was bearish for the euro.
"Based on how the talks are going and the prospect of a hawkish Fed next week, the outlook for EUR/USD is grim.... We are still looking for a move down to $1.1050."
2100 GMT Thursday Wednesday
EUR/USD 1.1260 1.1324
EUR/JPY 139.00 138.92
EUR/CHF 1.0515 1.0549
EUR/GBP 0.7255 0.7292
USD/JPY 123.45 122.67
USD/CHF 0.9340 0.9315
GBP/USD 1.5520 1.5528
