Wednesday, May 30, 2007

Dollar Gains On Other Majors,Wednesday, May 30, 2007 4:01:45 PM

The U.S. dollar saw some uncertainty, but advanced against its major counterparts on Wednesday morning in New York. Morning trading took place amid the release of weaker-than-expected jobs data from payroll processor ADP. Afternoon trading took place amid the release of the minutes from the last Fed meeting.

The dollar remained up against the euro on a choppy day of trading Wednesday in New York. The greenback moved higher amid the release of retail PMI data from Germany, France and Italy. The buck touched 1.3409 around 8 am Eastern Time, its highest level since the first half of April. The dollar cooled slightly over the next two hours, but then rallied again in the late morning. The greenback trended down in the afternoon and was at 1.3429 at 3:45 p.m., a little above its overnight level.

The greenback edged up on the pound during Wednesday morning`s trading in New York. An early rise took the buck to a weekly high against the sterling when it hit 1.9734 around 7 am Eastern Time. The dollar fell again until a little before 10 a.m., but then bounced back to recoup those losses. It slipped again in the mid-afternoon. The pair reached 1.9756 at 4 p.m. ET.

The dollar rose against the yen early Wednesday in New York amid uncertain trading. The greenback moved higher after the release of data showing that Japanese industrial production in April fell unexpectedly. The advance caused the buck to edge towards a three-month high. The follar fell for the last half of the morning, however, to return close to its overnight levels. But, the greenback rallied again in the afternoon to 121.65 by 4 p.m. ET.

Early trading took place as ADP released its report on employment in the month of May, showing that private non-farm employment grew less than economists had been expecting. The report was closely watched as it is usually a precursor to the jobs data released on Friday, which is widely considered to be the most important economic report.

During the afternoon, the minutes from the last meeting of the FOMC was released. The minutes showed inflation was still a concern but the risk of a sudden economic slowdown was diminished.
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