Dollar Higher Across The Board Early Thursday In Asia, Thursday, June 21, 2007 2:38:54 AM
The U.S dollar strengthened across the board during early Tokyo trading on Thursday. The greenback gained ground against its counterparts when the yen suffered broad weakness amid economic news from Japan.The Japanese merchandise trade balance data for May was released at 7:50 pm ET on Wednesday, which showed that the trade surplus recorded growth for the seventh month in a row, but at a pace slower than expected by analysts.
The U.S currency was down against the major currencies during the early Wednesday deals in New York, but the pairs started rebounding as souring bond-yields have resurfaced the concerns of a rate hike by the Federal Open Market Committee in the near future.
Investors are now looking forward to the speech, delivered shortly by Thoshihiko Fukui, the governor of the Bank of Japan. There is hardly any key economic indicator expected in the European session Thursday, but a few domestic reports from the U.S including the June month Philadelphia Fed index are likely to drive the deals in the North American session.
The US currency strengthened against the euro during late New York trading on Wednesday and continued higher lately in the early Asian deals on Thursday. Reversing its recent losses, the pair moved upwards on Wednesday, likely pushed by the renewed concerns of a rate hike by the Fed in the near future. Moving from Wednesday`s New York session close of 1.3401, the pair has lately fetched as high as 1.3382. This may be compared to Wednesday`s low of 1.3434 hit in the European session. As of now, the pair is moving sideways as the markets waiting for news from Thursday`s European deals, and immediate levels of resistance and support are seen around 1.332 and 1.343.
Against the Japanese yen, the dollar slipped briefly in the late New York hours on Wednesday, but the trend was reversed in the Tokyo session on Thursday. The greenback lately strengthened against the yen amid the release of the Japanese May trade balance data. The trade surplus has recorded growth for the seventh month in a row but at a pace slower than anticipated by economists. Gaining ground in the early Wednesday deals, the pair moved to 123.63 from 123.09, and the recent upward momentum, gained after a dip to 123.42, has lifted the dollar to 123.68 against the yen, lately.
The US dollar traded higher against the British pound during the early Asian deals on Thursday. This partly reversed the buck`s losses, suffered amid the release of the BoE minutes, in the early Wednesday deals. News that the BoE voted 5-4 to keep the rates on hold last time signaled a rate hike in the near future, and eventually, the pound was rallying across the board. From the previous New York session high of 1.9945, the pair has lately strengthened to 1.9906 and is now seeing uncertainty in direction ahead of the European news to come. As of now, the near term support and resistance levels are seen around 1.994 and 1.989, respectively.
The U.S. currency strengthened against the Swiss franc during the early Asian deals on Thursday. Following a steep fall in the European deals, the pair was gaining ground in Wednesday`s New York session. Moving up from 1.2353, the pair held steady during late trading in New York, but the buck continued upwards in the early Japanese Thursday. Of late, the pair has been holding steady around 1.239, with a likely upward target around 1.243 in the near term.
Copyright © 2007 RTTNews.com. All Rights Reserved.
posted by Kalin Tasev @ 2:40 AM
0 Comments:
Post a Comment
<< Home