Forex News: Euro Moved Higher Across The Board During Late Trading On Wednesday; Market Now Awaiting ECB`s Monthly Report, Thursday, May 17, 2007 2:11:37 AM

Thursday, May 17, 2007

Euro Moved Higher Across The Board During Late Trading On Wednesday; Market Now Awaiting ECB`s Monthly Report, Thursday, May 17, 2007 2:11:37 AM

The European currency moved up against its major counterparts during late trading on Wednesday in New York. While the common currency gained considerably against the yen and the dollar, it was edging up against the sterling and the franc.

The Japanese gross domestic product data was released at 7:50 pm ET on Wednesday, which showed numbers lower than analysts` expectations. The preliminary estimates for the first quarter showed that the GDP grew only 0.6% on quarterly basis, below the market expectation of 0.7%. The annualized growth number also printed lower than analysts` expectations.

No key economic data is expected in the European session on Thursday, but the European Central Bank`s monthly report, which is expected at 4:00 am ET, may be focused. Speech by Gonzalez-Paramo of the ECB is another event, likely to be attracted by investors.

In the North American session, apart from speeches by some key officials from the Federal Reserve, leading indicators for the month of April and the Philadelphia Fed index for May are likely to move the market.

The euro traded higher against the dollar in the late hours on Wednesday in New York. The pair gained ground at about 4:50 pm ET, and moving from 1.3510, the single currency equaled as high as 1.3535 bucks by about 8:50 pm. The euro then moved sideways against the dollar in a loose range, and of late, the pair is trading near 1.352. Largely, on Wednesday, the euro was at loss against the dollar and by that, the common currency dropped its gains on Tuesday. If the pair continued lower, it is likely that the euro test supports near 1.34 dollars in near term. On the opposite direction, the pair is likely to target a level around 1.368, which was hit on 1st of May, lately.

The euro trended slightly higher against the pound during evening trading on Wednesday in New York. The euro started drifting higher around 3 pm ET, and by about 8:30, the pair moved up to 0.6845 from 0.6835. The euro declined marginally thereafter, and then moved sideways in a tight range. Of late, the pair has been seeing uncertainty, and it was quoted at 0.6839 at 1:50 am ET. Largely, the pair has been trending higher since early April with an upside aim around 0.686. At 7:50 pm ET, when the Japanese GDP data was released, the euro staged a sharp surge against the yen. The pair thus hit 163.56 moving from 163.19, but it shed a few pips shortly. The euro then moved in a loose range against its Japanese counterpart, and of late, amid the BoJ rate decision, the pair moved slightly higher. As the market is now waiting for the BoJ`s monthly report and a little later, a press conference by the central bank governor, the pair is seeing uncertainty. At 1:50 am ET, the euro fetched 163.45 yen.

The European currency saw choppy trading against the Swiss franc during deals in Wednesday evening in New York. However, by about 7 pm ET, the pair started drifting higher, and moving from 1.6529, the pair equaled as high as 1.6547 before changing direction at 12:40 am ET on Thursday. About an hour after, the pair traded near 1.6541. This is a new multi-year high for the pair.