Wednesday, April 25, 2007

Dollar Seen Mixed After Key Releases, European Session Wednesday, Wednesday, April 25, 2007 5:23:22 AM

The US dollar showed varied trading early Wednesday in New York. Towards the end of the European session, the greenback remained lower against the euro and the pound but higher versus the Swiss and the Japanese counterparts.

The German IFO data for April and the British GDP data for first quarter were the key releases drove the deals in the session.

The German IFO business sentiment improved more-than-expected in April. The climate indicator stood at 108.6 for April versus the 107.7 recorded in March. Economists expected the index to touch 107.8 in the current month.

Another release showed that the U.K. real GDP grew 0.7% in the first quarter of 2007. This came when the market expected an expansion of 0.6%.

Later in the morning, the US durable goods orders and the new home sales data for the month of March are expected followed by the Federal Reserve`s Beige book in the afternoon.

The new home sales are expected to grow 3.2% in March versus the 3.9% decline recorded in February. The durable goods orders are also expected to hit higher numbers in March compared to the previous month`s figures.

The US dollar weakened against the euro early Wednesday in New York. The greenback moved higher into the small hours of the day to hit a session`s high at 1.3619. This was by about 1:30 am ET, after which the pair strengthened. The buck was quoted at 1.3653 at 2:40 am ET against the euro, but the pair moved sideways thereafter. The IFO data caused very little price effects on the pair at 4:00 am ET. As of 5:15 am ET, the euro collected 1.3647 dollars.

The US currency weakened against the British currency in the very early deals on Wednesday in New York. The pair strengthened from 2.0019 to 2.0064 during the time between 1:10 am and 2:35 am ET. However, the buck bounced back quickly. The pair regained its momentum shortly, and as of 5:15 am ET, the sterling collected 2.0047 US dollars.

The US currency weakened against the Japanese yen into very early Wednesday in New York. The pair reversed its direction at 2:20 am ET. Climbing up from 118.27 the pair collected 118.60 by about 3:55 am. The dollar then moved sideways versus the yen, and at 5:15 am ET, the pair was quoted at 118.56.

The US dollar moved downwards against the Swiss franc into the small hours on Wednesday in New York. The pair thus hit as low as 1.1994 at 2:40 am ET. The greenback rebounded thereafter, and the pair collected its session`s high of 1.2043 at 3:35 am ET. The pair then moved sideways, and it was equal to 1.2033 at 5:15 am ET.
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