US Dollar Strengthens Ahead Of European Deals On Friday, Friday, July 06, 2007 1:19:19 AM
The US dollar moved sideways across the board during late New York trading Thursday, holding its gains collected amid a stronger-than-expected ISM non-manufacturing data. The majors saw mixed trading through the early Friday Tokyo deals, but toward the end of the Asian deals, the greenback gained ground across the board.The Institute of Supply Management`s services business activity index hit 60.7 in June compared to 59.7 recorded for the previous month. The markets were expecting the index to hit 57.5 this time.
The dollar was however, down against its major counterparts during the European deals on the day, likely influenced by rate revisions done by the European and the British central banks. While the Bank of England raised the rates to 5.75%, the ECB left it unchanged at 4.0%, both in line with expectations.
The Asian deals on Friday took place amid release of Japan`s official reserve assets data for June. The reserve assets increased in Japan in two months mostly due to risen interest income fuelled by the euro`s strength against the greenback. Though the major pairs showed little reactions to the Japanese data, directions in some pairs have been changed towards the end of the session.
Investors are looking forward to the June month non-farm pay rolls data expected later this morning. The unemployment rate has been projected to remain unchanged from last month`s 4.5%.
The US currency dropped a few of its late morning gains against the euro in afternoon trading on Thursday in New York, and the pair closed the day`s deals at 1.3599 compared to the intra-day high of 1.3578 hit at about 10:35 am ET. In late trading, the dollar moved up to 1.3589 but has given back the gains in early Asian deals. Of late, towards the end of the Asian session, the pair has been trading near 1.3590 again.
Against the yen, the dollar moved sideways between 122.84 and 123.00 during late New York trading on Thursday, up from the previous day`s close of 122.60. Of late, in the early Tokyo deals, the greenback has added to its gains, likely influenced by the Japanese official reserve assets data for June. As of now, the pair has been trading near 123.1, which is a 4-day high, and the likely near term upside and downside targets are seen around 123.30 and 122.60 respectively.
The US dollar edged higher against the Swiss franc in late New York trading on Thursday. The pair hit 1.2180 against the previous session close of 1.2170 but moved sideways through the early Asian deals on Friday. However, lately, the pair edged further higher, hitting 1.2187 by about 1:00 am ET. As of now, immediate levels of resistance and support are seen around 1.2200 and 1.2150 respectively.
The US dollar moved higher against the British pound during late New York trading on Thursday. On the way up from the day`s close of 2.0119, the pair showed infirmity in direction during early Asian deals on Friday. However, towards the end of the Tokyo session, the pair picked up a few more pips and the pair is now worth 2.0097. Upside, the pair is likely to test resistance around 2.0080 in the near term.
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posted by Kalin Tasev @ 2:19 AM
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