Pound Strong Against Yen, Reversing Recent Losses Against Rest Of Majors, Lately, Thursday, May 31, 2007 6:47:52 AM
The British currency fell heavily against the major currencies during very early New York trading on Thursday, but later, the cable reversed the trends. Towards the end of the European session, the pound stood higher against the yen, but it could only partly reverse its early losses against the rest of majors.European session on Thursday was busy with key economic data releases from all the major economies. They include the Swiss Q1 GDP data, the German ILO unemployment data, the Nationwide`s U.K house prices data, French consumer confidence and producer prices data, German wholesale turnover data for April, The British M4 data and the Euro-zone consumer confidence survey report for the month of May.
While the Swiss and the Nationwide data weakened the sterling, it moved up amid the M4 data release. As of now, the markets are looking forward to the North American session on the day.
In the North American session, trading is likely to be driven by the US Q1 GDP data, March month personal consumption details and the Chicago Purchasing Manager Index. However, investors will be keenly waiting for the US house price index data for first quarter, which will be released at 10:00 am ET.
The British currency weakened against the dollar early Thursday in New York. The pair lost ground at about 1:25 am ET, when the pair moved from 1.9771. The sterling equaled as low as 1.9736 dollars by about 3:00 am, and thereafter, the pair improved briefly. Of late, the pair has been trading near 1.975. The pound showed weakness amid the Nationwide house prices data, but the M4 money supply data came out at 4:00 am, helped the pair to gain slightly. Largely, after setting a two-week high around 1.989 on last Tuesday, the pair has dropped off slightly.
The British currency held a tight range against the euro during late New York trading on Wednesday, but the pair fell heavily amid various European economic releases in overnight trading on Thursday. The pair thus fell to 0.6805 from 0.6794 by about 2:40 am ET. Thereafter, the cable moved up against the euro, and the pair has now been trading near 0.680. Largely, after hitting a 5-week high around 0.675 on 24th May, the pair has weakened slightly.
The pound slipped against the yen during very early New York trading on Thursday and collected its session`s low at 239.94 by about 2:05 am ET. Thereafter, the pair trended slowly higher and has been now trading near 240.3. Thursday`s European session was a busy one causing mixed reactions by major pairs. Largely, after hitting a new multi-year high on last Tuesday, the pair has weakened slightly.
Amid the Swiss GDP release at 1:45 am ET on Thursday, the sterling fell heavily against the franc. Falling off 2.4228, the pair fetched as low as 2.4117 by about 2:00 am, but thereafter, the sterling trended upwards. U.K`s M4 money supply data, which was released at 4:00 am, added to the gains of the pair. Of late, the pair has been trading near 2.421. Largely, after hitting a 15-week high on last Wednesday, the pair has weakened to an 11-day low, as of now. If weakens further, 2.38 will be a key level of support for the pair.
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posted by Kalin Tasev @ 5:46 AM
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