Wednesday, April 25, 2007

Dollar Uncertain With Euro, Pound; Gains On Yen, Wednesday, April 25, 2007 9:03:41 AM

The U.S. dollar was generally uncertain against its major counterparts on Wednesday morning in New York. In trading with the euro and the pound, the dollar lost ground in the early morning, but reversed some of the early losses with the mid-morning release of the stronger-than-expected durable goods data. Meanwhile, the greenback gained consecutively against the yen throughout the morning.

The dollar saw uncertain trading with the euro on Wednesday morning. Shortly before 7 am Eastern Time, the dollar fell to 1.3659, its lowest level against the euro since November 2004. The move came a little after the release of a report in Europe indicating German business sentiment improved more-than-expected. The dollar, however, reversed its earlier losses with the release of the durable goods data. Shortly before 9 am Eastern Time, the pair was back at its overnight numbers, trading around 1.3634.

The greenback was also uncertain in trading with the pound on Wednesday morning in New York. Throughout the early morning, the dollar traded at its lowest level since late last week when it touched 2.0062 around 2:30 am Eastern Time. This was the closest the dollar has come to the 26-year low it set against the sterling last week. The greenback soon moved off the low, however, and the pair moved sideways into the mid-morning when the release of durable goods data in the US caused the greenback to rise to overnight numbers. Shortly before 9 am Eastern Time, the dollar traded around 2.0026 against the pound.

Meanwhile, the dollar gained on the yen throughout Wednesday morning in New York. The early morning trading between the two currencies came after data released overnight showed Japan`s trade surplus hit a record high in March. The report did little to help the yen, however, as the dollar began moving higher shortly before 3 am Eastern Time. The buck moved to a daily high of 118.84 with the release of the durable goods data from the US. Shortly before 9 am Eastern Time, the pair traded around 118.71.

Wednesday morning, the Department of Commerce released its advance report on durable goods orders in the month of March, showing that orders for durable goods rose 3.4% in March following an upwardly revised 2.4% increase in February. Economists had expected orders to rise 2.5% compared to the 1.7% increase originally reported for the previous month.
Copyright © 2007 All Rights Reserved.


Post a Comment

<< Home