Forex News: July 2007

Tuesday, July 31, 2007

Yen Moves Higher Against Other Major Currencies, Tuesday, July 31, 2007 6:28:06 PM

The Japanese yen saw strength against the other majors on Tuesday in New York. The yen moved higher in the afternoon against the dollar, euro and sterling. On Tuesday, Japan`s Ministry of Internal Affairs and Communication revealed that the seasonally adjusted unemployment rate eased 0.1 percentage point to 3.7% in June on a monthly basis. Traders look ahead to Japanese vehicle sales data for July, expected to be released Wednesday morning.

The yen was higher against the pound on Tuesday in New York. The Japanese currency rose in early trading but then declined for about six hours, starting at 2 a.m. ET. Trading was generally for the rest of the morning but the yen surged in the early afternoon. It got as high as 240.13 at 5:15 p.m. ET. It was at 240.33 about an hour later.

The yen moved up in afternoon trading with the euro on Tuesday in New York. The Japanese currency climbed early, but then edged lower through the morning and touched as low as 163.81 at 7:30 a.m. ET. The Japanese currency began to rise from there and returned to its overnight levels by late morning. The yen advanced higher through the afternoon and into the early evening. The pair traded at 161.86 at 12:20 p.m. ET. Japan`s Ministry of Internal Affairs and Communication revealed that the seasonally adjusted unemployment rate eased 0.1 percentage point to 3.7% in June on a monthly basis.

The yen advanced against the dollar on Tuesday in New York. The yen edged lower for several hours in the early morning, but saw some strength in the later morning. The currency gained sharply in mid-afternoon trading and then continued to edge higher into the afternoon. The currencies were at 118.36 at 6:20 p.m. ET. The pair has been range bound since late last week.

Singapore Dollar Sees Weakness Against Majors, Tuesday, July 31, 2007 6:14:21 PM

The Singapore dollar was weaker against its major counterparts on Tuesday in New York. The currency fell against the greenback and pound and was little moved against the euro. There was no major economic news from Singapore on Tuesday.

The Singapore dollar was down against the greenback on Tuesday in New York. The currencies were range-bound until about 9 a.m. ET when the Singapore dollar began to drop sharply for about two hours. It edged back higher through mid-day trading and was generally level from there. The pair was at 1.5145 at 6 p.m. ET.

The Singapore dollar was little changed against the euro on Tuesday in New York. The currency fell in the late morning but edged back in the early afternoon. The currencies traded at 2.0732 at 6:05 p.m. ET.

The Singapore dollar was down slightly against the sterling on Tuesday in New York. The currency gained in the early hours but then trended down for the rest of the morning and into the afternoon. It reached as low as 3.0860 at 1 p.m. ET. The Singapore currency moved back higher in the afternoon and traded at 3.0780 at 6:10 p.m. ET.

Australian Dollar Moves Lower Against Majors, Tuesday, July 31, 2007 5:44:28 PM

The aussie was down against the major currencies on Tuesday in New York. The Australian dollar saw most of its weakness in afternoon activity. Traders looked ahead to Wednesday morning`s release of data reports on Australian retail sales, trade balance, exports and imports.

The Australian dollar fell out of a range against the greenback in the afternoon and was down for the day. The pair was range-bound until about 3 p.m. ET when it started to decline. It fell for the next 2 Ѕ hours and was at a daily low of 0.8507 at 5:30 p.m. ET.

The Australian dollar saw afternoon weakness and was down for the day against the euro. The aussie began to fall in the early afternoon and dropped sharply at 3:30 p.m. ET. It continued to edge lower in the later afternoon and traded at 1.6083 at 5:30 p.m. ET.

The aussie saw weakness against the sterling and was down for the day on Tuesday in New York. The Australian dollar gained early, but then began to fall at around 5 a.m. ET. it added further losses in the late morning and then fell throughout the afternoon. It was at a daily low of 2.3869 at 5:40 p.m. ET.

Kiwi Sees Afternoon Weakness Against The Majors, Tuesday, July 31, 2007 5:18:45 PM

The New Zealand dollar moved lower against the other major currencies on Tuesday in New York. The kiwi saw weakness in the afternoon against the dollar, euro and sterling. There was little economic news was released from New Zealand on the day.

The kiwi dropped in afternoon trading against the greenback on Tuesday in New York. The currencies were range-bound in the morning, but the New Zealand currency began to drop at around noon ET and continued to decline in the afternoon. It got as low as 0.7610 at 4 p.m. ET. About an hour later, the pair was at 0.7621.

The New Zealand dollar saw weakness in afternoon trading against the euro. The kiwi was range-bound until about 2 p.m. ET when it began to decline sharply. It fell for about two hours before leveling off.

The kiwi moved lower against the sterling in the afternoon on Tuesday in New York. The New Zealand currency fell below a range in the early afternoon and continued to decline. It finally stabilized at around 4 p.m. ET.

Greenback Mixed Against Other Majors Amid Several Economic Reports, Tuesday, July 31, 2007 4:01:24 PM

The greenback was mixed against its major counterparts on Tuesday The greenback posted gains on the euro and was range-bound with the sterling. The buck fell versus the yen. Trading took place amid the release of several key economic reports in the U.S. Better than expected consumer confidence and an employment cost index that met expectations were countered by disappointing reports on personal income and spending, business activity in the Midwest, and construction spending.

The U.S. dollar was up against the euro on Tuesday in New York. The greenback fell sharply in early trading and touched as low as 1.3718 at 8:30 a.m. ET. It gained from there for about two hours. It slipped again in the late morning, but bounced back in the early afternoon. It got as high as 1.3680 at 2:40 p.m. ET. It settled back to 1.3685 about an hour later. Traders mulled data showing that the Euro zone jobless rate was unchanged in June and consumer prices were up in July.

The greenback was little moved on Tuesday in New York against the sterling. The currencies traded in a range between the 2.0345 and 2.0285 through the morning. It got as low as 2.0377 in the early afternoon, but edged back to its overnight levels by 3:50 p.m. ET. Traders mulled the release of data showing that UK consumer confidence waned in July.

The dollar fell below support in afternoon trading against the yen and was down for the day Tuesday in New York. The greenback edged higher for several hours in the early morning, but saw some weakness in the later morning. It dropped sharply in the afternoon and moved to a daily low of 118.56 at 3:55 p.m. ET. Japan`s Ministry of Internal Affairs and Communication revealed that the seasonally adjusted unemployment rate eased 0.1 percentage point to 3.7% in June on a monthly basis.

Swiss Franc Mixed Versus Major Currencies, Tuesday, July 31, 2007 3:03:23 PM

The Swiss franc experienced mixed results against its major counterparts Tuesday in New York. The Swiss currency gained ground versus the euro, but lost some to the sterling. Meanwhile, the franc experienced uncertain trading with the greenback and the yen. Traders mulled data showing that the Swiss June UBS Consumption Indicator showed a strong upturn in June.

The Swiss franc was largely choppy against the dollar Tuesday in New York. At 2:40 pm ET, the Swiss currency traded at a mark of 1.2030 against its American counterpart. This is compared to an intraday high of 1.2018 at 12:00 pm and an intraday low of 1.2065 at 10:20 am. Greenback traders considered data showing that American consumer confidence rebounded more-than-expected in July.

The Swiss franc moved higher again against the euro on Tuesday afternoon in New York and has reached a new daily high. The franc spiked up at around 10:45 a.m. ET to erase early losses. It added further gains at around 2 p.m. and has continued to move up. The pair is currently at 1.6461.

Against the sterling, the Swiss franc slid Tuesday in New York. At 2:49 pm ET, the Swiss currency traded at a mark of 2.4464 against its British counterpart. This is compared to an intraday high of 2.4391 at 1:50 am and an intraday low of 2.4512 at 7:40 am. Traders mulled the release of data showing that UK consumer confidence waned in July.

The Swiss franc experienced mostly choppy trading against the yen Tuesday in New York. At 2:52 pm ET, the Swiss currency traded at a mark of 98.73 against its Japanese counterpart. This is compared to an intraday low of 98.64 at 1:40 am and an intraday high of 99.13 at 7:30 am. On Tuesday, Japan`s Ministry of Internal Affairs and Communication revealed that the seasonally adjusted unemployment rate eased 0.1 percentage point to 3.7% in June on a monthly basis.

Swiss UBS Consumption Indicator staged a brisk recovery in June after the downside in the prior month, a report revealed Tuesday. The UBS said the monthly Consumption Indicator climbed to 2.31 in June from 2.10 in May, revised up from 2.09 earlier. The indicator now stays near the April high of 2.38. Further, the indicator exceeded its long-term average of 1.49 for the sixteenth month in a row.

Energy Prices Move Up; Crude Oil Tops $78, Tuesday, July 31, 2007 2:42:03 PM

Energy prices were higher on Tuesday in New York. Crude oil moved to a yearly high and within 12 cents of the record best set last July. Heating oil and gasoline also climbed, while natural gas declined.

Crude oil climbed above $78 per barrel on Monday in U.S. trading and reached a yearly high. Light sweet crude oil was at $78.17, up $1.34 in the afternoon. Oil got as high as $78.28 at 2:15 p.m. before slipping in the next five minutes. The record high of $78.40 was reached in July of 2006. Traders await Wednesday`s inventory report.

Natural gas was down in U.S. trading on Tuesday, moving away from a 10-day high. September-dated natural gas dropped in early trading and trending down through mid-day trading. It traded at $6.19, down 30.9 cents. It had been trending up for the last several days.

Heating oil moved up in U.S. trading on Tuesday, adding 4.09 cents to deal at $2.124. Prices opened higher and continued to rise through mid-day activity. It was flat in the afternoon until spiking up at around 2:25 p.m.

Gasoline prices were up in U.S. trading on Tuesday, adding 4.78 cents to deal at $2.107. Trading has been range-bound for several days.

Monday, July 30, 2007

US Dollar Mixed Against Asian Majors, Monday, July 30, 2007 10:15:53 PM

The US dollar has been seeing mixed performance against its major Asian counterparts after data release from Japan and Australia on Tuesday.

Japan June jobless and household spending, Australia`s building approvals and NAB Q2 business conditions are the data releases likely to have affected the deals recently. There was no economic information from New Zealand.

The US dollar was down against the Australian and the New Zealand currencies during late New York trading on Monday, but it continued its intra-day uptrend versus the yen.

However, following the data releases, the pairs have changed their directions. As of now, the greenback has been ticking down against the yen while drifting up against the Aussie and the kiwi.

Down from a late New York high of 119.23, the dollar-yen pair has been now trading near 118.9. On the other hand, the greenback has strengthened to 0.8574 from 0.8614 against the Aussie and to 0.7686 from 0.7721 versus the NZ currency, during this time period.

New Zealand` NBNZ July business confidence and Japanese June housing starts data are expected shortly and thereafter, traders will be waiting for a busy European session, which is expected to see key releases including German and Euro-zone unemployment rate for June, Euro-zone July consumer price inflation and GfK consumer confidence.

Meanwhile, the US currency has been holding steady versus the sterling but has picked up a few pips against the euro. Against both the currencies, the greenback was weak in late New York deals.

As of now, the dollar has been trading near 1.3710 against the euro, up from 1.3725 hit about 7:15 pm ET Monday and down from the previous session`s close of 1.3692. At the same time, the greenback has been holding a tight range against the pound around 2.0310 down from it preceding session`s close of 2.0247.

Yen Sees Weakness Against Major Counterparts, Monday, July 30, 2007 7:01:30 PM

The Japanese yen was weak against the other majors on Monday in New York. The currency was generally uncertain in the morning, but dropped against the euro, dollar and sterling in the afternoon. Yen traders looked ahead to household spending data for June, expected later Monday.

The yen was down against the dollar on Monday in New York. The yen fell in the early morning, but rebounded from that and reached as high as 118.08 at about 6:30 a.m. It cooled over the next few hours and then dropped sharply through the afternoon. The pair traded at 119.17 at 6:50 p.m. ET, just off the daily low for the yen. In general, the pair has been range-bound for a few days. Greenback traders looked ahead to Tuesday`s US employment data.

The yen slipped in trading with the euro on Monday in New York and moved away from a three-month high. The Japanese currency dropped in early-morning trading but rebounded later in the morning. It began to fall again a little before noon ET and continued to decline throughout the afternoon.. The pair traded at 163.32 at 6:55 p.m. ET. Investors mulled data showing that German wholesale turnover grew in June.

The yen saw weakness against the pound on Monday afternoon and moved away from a seven-week high. The yen dropped in the earning morning, but edged higher over the next three hours. It dropped again throughout the afternoon and traded at 241.50 at 6:55 p.m. ET. Trading took place amid the release of data showing that U.K. mortgage approvals topped expectations in June.

Singapore Dollar Mixed Against Majors, Monday, July 30, 2007 6:48:29 PM

The Singapore dollar saw mixed results on Monday in New York against other currencies. The currency was up against the greenback, down against the euro and little moved against the pound. There was little economic news out of Singapore on the day.

The Singapore dollar moved higher against its U.S. counterpart on Monday in New York. The currency edged slightly higher through the morning and afternoon and then surged up sharply at around 6 p.m. ET. The currency reached a daily high at 1.5118 at 6:15 p.m. ET.

The Singapore currency moved lower against the euro on Monday in New York. The dollar slipped in the early morning and then trended down again in mid-day trading. The pair traded at 2.0725 at 6:40 p.m. ET.

The Singapore dollar was little moved against the sterling on Monday in New York. The currency fell sharply in the early morning, but edged back higher for the rest of the morning and into the afternoon. It dropped again in the late afternoon to return to its overnight levels. The currencies dealt at 3.0655 at 6:45 p.m. ET.

Aussie Rises Against Major Counterparts, Monday, July 30, 2007 6:15:48 PM

The aussie saw strength against the majors on Monday in New York. The currency slipped in early trading but rebounded in the later morning and then climbed in the afternoon. The aussie moved as Australia reported on Business Confidence for September and New Home Sales for June.

The Australian dollar moved higher against the greenback on Monday in New York. The aussie was choppy in the morning, touching as low as 0.8460 at around 8 a.m. ET. It moved higher from there for the rest of the morning and continued to rise throughout the afternoon. The currencies traded at 0.8578 at 6 p.m. ET.

The aussie gained in late-afternoon trading with the euro on Monday in New York after uncertain trading throughout the day. The currencies bounced between 1.6155 and 1.5985 through the morning and most of the afternoon until the aussie broke above the range in the late afternoon. The currencies traded at 1.5950 at 6 p.m. ET. The rally took the aussie away from a seven-week low.

The aussie was up in trading against the sterling on Monday in New York. The Australian dollar edged lower in the early morning and touched as low as 2.3918 at 8 a.m. ET. It rebounded with a rally about an hour later and then climbed higher in the afternoon. The currencies traded at 2.3586 at 6:10 p.m. ET.

Australian business confidence indicator gained 2 points to 12 points in the September quarter. This is the highest confidence level since December 2003. The indicator suggested an improvement in business performance in the coming months. Meanwhile, new home sales among Australia`s largest builders and developers dropped 0.8% in June. New home sales fell to a level of 8,321 dwellings in June.

Five Major Reports Set For Release Tomorrow - Economic Preview, Monday, July 30, 2007 4:40:23 PM

Tuesday morning kicks off a week chock full of reports. Though most of the reports have market moving potential, investors are looking forward to Friday for the release of the employment situation report.

Tuesday at 8:30 am ET data on personal income and spending will be unveiled. Personal income is the total dollar value of income received from all sources by individuals. The data is another way to gauge the strength of the consumer sector in the economy.

Personal income swung up 0.4 percent in May, following a 0.2 percent dip in April. Due to moderately healthy wage and job growth in June, it is likely the report will show another good gain for personal income. The consensus estimate for personal income is a growth rate of 0.6 percent, slightly higher than May. An increase is good for the economy, especially amidst concerns that the spread of the subprime mortgage crisis to prime mortgages could impact consumer spending. However, inflation is still a concern for the Fed.

Also at 8:30 am ET the employment cost index will be made available. The employment cost index is simply that: the measure of total employee compensation costs, including wages and salaries as well as benefits. It is the broadest measure of labor costs. It is an easy way to measure wage trends and evaluate the risk of wage inflation.

The employment cost index rose a softer-than-expected 0.8 percent in the first quarter, though the wage & salary component did show pressure. That component rose 1.1 percent for the sharpest gain in six years. The benefit reading, subdued by lower employer contributions to retirement plans, is the lowest in eight years. Analysts expect a 0.9 percent rate for the second quarter.

At 9:45 am ET the National Association of Purchasing Management - Chicago (NAPM-Chicago) will make available its survey of business conditions in the Chicago area. The report is considered a leading indicator of the ISM manufacturing index, which comes out Wednesday. Analysts expect to see a slight decrease for the month of July, after May and June came in above 60. The official estimate is 58.

The consumer confidence index is scheduled for release tomorrow at 10:00 am ET. Consumer confidence is the overall attitude of consumers with regard to present economic conditions. It is considered a good indication of the condition of consumer spending. Because consumer spending makes up two-thirds of the economy, consumer attitude is often the foremost influence on stock and bond markets.

The consumer confidence index dropped sharply in June, down to 103.9 from May`s 108.5. For July analysts expect a modest increase to 105. Last week consumer sentiment from University of Michigan showed that, on the whole, July was a strong month for consumers. Investors hope the good news will be continued in the consumer confidence index.

Finally, set for release at 10:00 am ET is the report on construction spending. Construction spending is the dollar value of new construction activity on residential, non-residential, and public projects. The data is a good indicator of the economy`s momentum, because businesses and individuals only put money into new construction when they are confident that demand is strong enough to justify the expansion.

Construction spending spiked 0.9 percent in May, following a 0.2 percent increase in April. The May increase was well above the market forecast for a 0.2 percent increase. Analysts expect a more modest increase of 0.2 percent for June.

Friday, July 27, 2007

Three Major Reports Scheduled For Release Next Week - Economic Preview, Friday, July 27, 2007 4:52:40 PM

Friday morning a better-than-expected report on gross domestic product failed to nurse a bruised market. Investors are looking forward to a series of reports released next week which should paint a clearer picture of the future of economic growth.

The series of reports begins at 8:30 am ET Tuesday with the release of a report on personal income and outlays. Personal income is the total dollar value of income received from all sources by individuals. The data is another way to gauge the strength of the consumer sector in the economy, and estimate the future. Problems with lending and evidence that the subprime mortgage crisis is spreading to prime mortgages have left investors concerned about consumer spending. A report on consumer sentiment came in slightly below expectations, though it showed July as the strongest month since February.

Wednesday at 10:00 am ET is the scheduled time for the release of the ISM manufacturing survey. The survey is conducted by the Institute for Supply Management, and encompasses nearly 400 manufacturing firms on all aspects of employment, production, new orders, supplier deliveries, and inventories. The information gives investors a detailed look at the manufacturing sector, a major cog in the economy. Also seen in the report are sub-indexes which provide insight on the potential for developing inflation. Therefore, the Federal Reserve will also keep a close eye on the report, as inflation remains its chief concern.

Rounding out the big three for next week is the Employment Situation Report, scheduled for release Friday at 8:30 am ET. The employment situation report is very important as it contains a set of significant labor market indicators. These include unemployment, the average workweek, and the basic hourly rate. Investors can learn a lot from the report, especially with wage inflation. The Federal Reserve is always on the lookout for wage inflation, which can be a main cause of an interest rate hike.

Other reports coming out next week include consumer confidence on Tuesday, the 10-year note announcement and motor vehicle sales Wednesday, and the ISM non-manufacturing survey Friday.

Japanese Elections Loom And Abe Cannot Afford To Lose The Battle, Friday, July 27, 2007 4:32:39 PM

“It is important that you give me the power to carry out reforms. Please give me your strength. I can`t afford to lose,” Japanese Prime Minister Shinzo Abe shouted through a loudspeaker on top of a van at the launch of his campaign for elections to the upper house of parliament two weeks ago. Yes, Abe cannot afford to lose the battle, but why?

The beleaguered Prime Minister knows the answer better than anyone on the political scene in the land of the rising sun. As it turns out to be a binding referendum on Abe`s performance, one cannot dismiss the chance of the people`s negative verdict determining his political future.

Sunday`s election to Japan`s House of Councilors is going to be a real acid test for the barely one-year old policies of the coalition government headed by Abe. While the ruling coalition expresses a customary confidence in the people`s verdict, the results of surveys that captured the common man`s feelings on the nation`s first Prime Minister born after World War II, do not portray a gleaming picture.

Popularity at a low

Support for Abe`s government and the Liberal Democratic Party he leads, plummeted to a record low range a week earlier at 20-30 percent. A critical look into the eventful 10 months after 52 year old Abe became the youngest post-war Prime Minister of Japan last September will unveil the fall from grace of the energetic and reformist successor of the irrepressible Junichiro Koizumi.

With a dramatic improvement in Japan`s historically difficult relations with China and South Korea and centralizing decisions in the Prime Minister`s office to augment the pace of reform, Abe could successfully stamp the first impression as a pragmatist in international relations and internal administration after his triumph in the general elections in September 2006.

However, critics of Abe say a defeat may be justified because while focusing on building national assertiveness, he has overlooked voters` concerns about their economic future, and thus support for him has fallen. Abe`s fortunes have declined in spite of a healthy economy and no major disasters during his 10 months in office.

Ineffectual manager of a cabinet

The image of an ineffectual manager of a cabinet beset by all too familiar corruption scandals has done damage to Abe. Agriculture Minister Norihiko Akagi`s involvement in a political-financing scandal, the resignation of controversial Defence Minister Fumio Kyuma, and the suicide of scandal-tainted Farm Minister Toshikatsu Matsuoka have only helped to expose the eroding strength of character and integrity of Abe`s cabinet. If he does not resign, the Prime Minister may have to at least recast his entire cabinet irrespective of the outcome.

Slogan backfires

Abe`s slogan, “reform or reverse”, seems to have backfired on him, as there is a widespread perception that reforms are getting delayed and that some are, indeed, in reverse. If the electorate realizes that their quality of life has degraded, considering certain key elements that affect their day-to-day lives, and if it converts into negative votes, Abe will find it difficult to capture at least half of the 120 seats up for election. The lives of many rural residents have not yet benefited from the economic reforms, while the tax burden has increased and medical services have degraded. The increasing number of the unemployed and the welfare recipients below poverty line in no way reflects the image of a welfare state of Japan, the industrial giant.

Six recent media polls showed the coalition will lose control of the upper chamber. If there is a landslide loss, there is some risk that the Japanese Prime Minister may resign. In case of political instability in Japan next week, financial analysts forecast that the bank of Japan may not raise interest rates next month and carry traders could force the yen to weaken to 125 against the U.S. dollar. It is also indicated that Japanese investors may diversify their investment away from their home country.

A defeat will weaken reforms

UBS economist Takashi Omori points out the possibility of a weakened Abe getting disabled in sailing the Japanese economy smoothly. In the event of the coalition majority losing control of the upper house, Abe`s administration would find it hard to pass laws because the upper house can block most legislation. That would hold up deregulation efforts, free-trade agreements, and other policies necessary for Japan`s prosperity. There is also a possibility of Abe slowing his efforts to overhaul inefficient industries.

Able crisis manager

Having said so much on the negative, one cannot go without citing the Prime Minister`s ability for crisis management. He recently showed that he could handle crises decisively, first over the scandal of 50 million missing pension records and then in responding to the Kashiwazaki nuclear leak; leave alone his observation last March that there was no evidence to prove that the “comfort women” exploited by Japan`s wartime Imperial Army were coerced.

Improved foreign relations

It may not be strong enough to overcome the effects of Abe`s domestic troubles, but still there is something for him to be proud of in handling Japan`s foreign policy. While ten months may not be a long enough period to make a thorough assessment of a new Prime Minister`s foreign policy, it can still be seen as one with mixed results.

Maintaining its strong relationship with the U.S., Japan has also begun to build links with NATO and the European Union. Diplomacy with North Korea, unfortunately, has come to a standstill in his efforts to solve the abduction issue. There has been growing criticism within Japan that Abe`s policies regarding North Korea have effectively isolated the country from the U.S. and South Korea.

It must also be noted that Abe has also pushed for a more assertive foreign policy based on values. The forging of strong links with other democratic states from the Pacific to the English Channel was a significant step forward in making Japan a bigger player on the international scene, considering the relevance of developing stronger defense relations. Abe has proved that he has the potential to implement a strategy of Japan taking the role of a stakeholder in the region.

People`s Mandate - a lesson to learn from

Although Sunday`s elections are not to elect the Prime Minister (as the LDP Policy Research Council Chairman Shoichi Nakagawa defends his leader, sounding like an anticipatory bail), the outcome is definitely going to be a clear signal to the position where Abe, his government, and its policies stand in the hearts and minds of the Japanese people. Whatever the results, one thing is for sure: Abe and his party cannot move forward neglecting the review of the people`s mandate for the second time in less than a year.

The margin of defeat may become a decisive factor in Abe`s choice to resign. But since the upper house has only limited powers, even a modest loss of seats wouldn`t automatically mean his ouster. Most analysts think he would likely be able to carry on even after July 29. His right-hand man and chief cabinet secretary Yasuhisa Shiozaki`s statement on Tuesday that Abe intends to stay on, regardless of the election result, is enough to put an end to the debate on the issue.

There are political analysts who believe there is a potential candidate to replace Abe in case of a setback - Foreign Minister Taro Aso. Like Abe, he favors deregulation and keeping tax rates under control, but has a distinct plus: Aso is a more experienced politician who might get business done more effectively.

Dollar Moves Higher Against Euro And Sterling; Down Against Yen, Friday, July 27, 2007 4:15:49 PM

The greenback was generally stronger against its major counterparts as traders considered data showing that the American GDP rose 3.4% during the second quarter. This was above analyst estimates. The buck moved to a two-week best against the sterling and euro with the day`s rally. It was lower against the yen.

The U.S. dollar gained against the euro on Friday in New York. The greenback started to rise at around 2 a.m. ET and continued to rise until about 8 a.m. It moved up again in the late morning and got as high as 1.3629 at 12:15 p.m. ET. Trading was level in the afternoon and the currencies were at 1.3637 at 4 p.m. ET. The rally has taken the dollar to a 16-day high.

The greenback saw strength against the sterling on Friday in New York and touched a two-week high. The dollar began to rise at around 2 a.m. and continued to do so until about 7 a.m. It rallied again and reached a resistance level of 2.0250 at 4 pm. ET. It returned to that level at 4 p.m.

The dollar was down for the day against the yen on Friday and remained near a three-month low. The greenback fell early and then settled into a range. The currencies traded between 119.27 and 118.42 through the morning and afternoon. The dollar was at 118.61 at 4:05 p.m., near the low end of the range.

Traders also looked ahead to next week`s Chicago and ISM business confidence data. Analyst Peter Possing Andersen is looking for the high levels to be maintained, suggesting that US industry will enjoy a robust start to Q3 and hence be supportive of growth prospects for H2. In general, Anderson said the data in the coming week is expected to confirm that the US economy excluding the housing market is still in fine fettle.

Yen Advances In Trading On Friday Afternoon, Friday, July 27, 2007 4:13:10 PM

The yen was strong in trading on Friday afternoon in New York versus its world counterparts. The yen advanced as Japan released CPI data on a national and Tokyo basis.

The Japanese currency moved little against its American counterpart in trading on Friday. The currency held in a range through to the afternoon between a high of 118.48 and a low of 119.23. Overall, the yen is at a 13 week high against the American dollar.

Versus the pound on Friday, the Japanese currency saw strength through trading. By the mid afternoon, the Japanese yen had advanced to a mark of 240.87. Overall, the yen is near a seven week high against its British counterpart.

The Japanese currency climbed against its European counterpart in Friday`s action. The yen rose steadily through the session to moved near 162.19 in the mid afternoon. Overall, the Japanese currency is near a six week high against the European currency.

Japan`s core annual Consumer Price Index fell 0.1% in June, falling for the fifth straight month. The result was in line with market expectations. The previous month also witnessed a decline of the same magnitude. The nationwide headline annual CPI remained unchanged in June, although the index edged up 0.1% over the prior month.

Treasuries Weaken Slightly For Friday`s Close, Friday, July 27, 2007 4:12:39 PM

The bond market was unable prolong its 4 day winning streak, closing slightly down Friday. Yields rose in the morning hours, after a better-than-expected report on gross domestic product gave investors hope that the economy was adjusting to problems in the housing market. However, housing woes combined with increasing concern about credit availability overshadowed the bright spot of the GDP report.

For the week the yield on the benchmark 10-year note plummeted 17.9 basis points. Investors are looking ahead to next week, when a slew of reports will help determine if Wall Street is merely experiencing a hiccup in a rally or on track for a correction. The Dow closed down over 200 points Friday in its third consecutive loss.

On Friday, the yield on the benchmark 10-year note closed down 1.3 basis points to 4.79%.Strong economic growth in the second quarter was revealed in the report on gross domestic product released this morning. For the second quarter, GDP gained at a 3.4% annual rate. Analysts had expected a growth rate of 3.2%. Increased business spending was a major component of the increased growth. Gross domestic product measures the value of all goods and services produced in the United States. It is considered the best measure of the country`s economic well being.

Last week investors grew increasingly concerned that the strong economy would force the Fed to raise interest rates. Those fears were reversed this week after worse than expected data about the housing market was released, resulting in fears of a weak economy. The report released this morning tempers both concerns, with an increase in the growth rate coming as inflation moderated. An inflation gauge showed `core` prices, those excluding food and energy, rose a mere 1.4 percent in the second quarter. That was down one percent from the 2.4 percent pace in the first quarter, making it the smallest increase in four years.

Also released this morning was a report on consumer sentiment. The report, released twice a month by the University of Michigan, revealed that consumer sentiment came in slightly below expectations. The final reading for July was 90.4, a touch below the consensus of 91.2. Sentiment bounced back from June`s final reading of 85.3, a 10-month low. It was the highest reading since February, when it came in at 91.3.

Investors are looking forward to the wealth of information which will be made available next week. The information comes in the form of market-moving economic reports, including personal income, the ISM manufacturing index, and employment situation. With the market unable to gain traction from the positive GDP report, investors are hoping the reports will provide a clear direction.

Swiss Franc Mixed Against Major Counterparts, Friday, July 27, 2007 2:32:41 PM

The Swiss franc experienced mixed results against its major counterparts Friday in New York. The Swiss currency advanced against the euro and the sterling. Meanwhile, the franc fell versus the dollar and the yen. Traders considered data showing that the Swiss KOF leading index climbed above expectations in July.

The Swiss franc ticked lower against the dollar Friday in New York. After experiencing uncertain early morning trading, the Swiss currency began to slide just after 3:00 am ET. At 6:30 am, the franc fell to an intraday low of 1.2132 against the buck. The Swiss currency rebounded over the remainder of the morning before leveling off in the early afternoon. At 2:08 pm, the franc traded at a mark of 1.2088 against its American counterpart. Greenback traders considered data showing that the American GDP rose 3.4% during the second quarter. This was above analyst estimates.

Against the euro, the Swiss franc advanced Friday in New York. The Swiss currency rose slightly during mostly choppy early and mid-morning trading before climbing further just before 10:30 am ET. At 12:00 pm, the franc reached an intraday high of 1.6472. The Swiss currency gave back some of its gains over the next couple of hours to trade at a mark of 1.6494 at 2:11 pm. European currency investors mulled data showing that German consumer confidence was stable in July.

The Swiss franc climbed against the sterling Friday in New York. The Swiss currency experienced mostly choppy trading until beginning an advance after 5:30 am ET. By 12:10 pm, the franc reached an intraday high of 2.4500. The Swiss currency gave back some of its gains over the next couple of hours. At 2:16 pm, the franc traded at a mark of 2.4502 against its British counterpart. Traders looked ahead to the Bank of England`s rate decision next week. Experts expect the rates to remain unchanged.

Versus the yen, the Swiss franc retreated Friday in New York. The Swiss currency fell during the bulk of the early and mid-morning, hitting an intraday low of 97.79 at 7:30 am ET. The franc rebounded from some of its losses over the rest of the morning and early afternoon. At 2:19 pm, the Swiss currency traded at a mark of 98.26 against its Japanese counterpart. Japanese currency investors mulled data showing that Japanese core consumer prices fell as expected during June.

The Swiss KOF economic barometer climbed to a reading of 2.13, the KOF Swiss Economic Institute, said Friday. This was well above the economists` consensus for a reading of 2.01. The increase was mainly due to the positive impact on the barometer by the survey results of the banking module.

Sterling Loses Steam On Friday Against World Counterparts, Friday, July 27, 2007 2:25:30 PM

The British currency was weak in trading against its world counterparts on Friday afternoon in New York. The sterling moved as little economic news was released from the region.

In trading against the euro on Friday, the British currency saw weakness headed into the afternoon action. The sterling dropped steadily to a mark of 0.6732. In general, the British currency is near a week and a half low against its European counterpart.

The sterling saw weakness against its American counterpart in trading on Friday afternoon. The British currency fell steadily through the day to a mark of 2.0274. On the whole, the British sterling is near a three week low against the American dollar.

Versus the yen on Friday, the British currency saw weakness through trading. By the mid afternoon, the British sterling had dropped to a mark of 240.87. Overall, the pound is near a seven week low against its Japanese counterpart.

In the week ahead, the BoE will be meeting. Danske Banke analysts stated that a change in interest rates looks unlikely. The official inflation report will be released on August 8th. Analysts note that the effects of the higher British interest rates have in fact become more apparent in recent weeks, with the various measures of house prices all rising less than expected, although the price growth of 10% still has to be considered as very strong according to Dankse Banke. Economic growth also looks solid, according to analysts. Danske Bank holds that the BoE will raise rates one last time to 6.0% in the autumn.

Euro Weak Against Buck And Yen Friday, Strong Versus Sterling, Friday, July 27, 2007 2:07:05 PM

The European currency dropped against its American and Japanese counterparts in trading on Friday afternoon in New York. Meanwhile, the euro was strong in action against the pound. On the whole, the euro moved as Germany released annual inflation numbers for June.

The European currency fell against its American counterpart in trading on Friday. The currency dropped sharply in the early morning hours and held close to a mark of 1.3647 as action moved into the afternoon. On the whole, the euro is near a three week low against its American counterpart.

In trading against the pound on Friday, the European currency saw strength headed into the afternoon action. The euro rose steadily to a mark of 0.6732. In general, the European currency is near a week and a half high against its British counterpart.

The European currency fell against its Japanese counterpart in Friday`s action. The euro dropped steadily through the session to moved near 162.19 in the mid afternoon. Overall, the European currency is near a six week low against the Japanese yen.

German consumer prices index rose 1.9% on year in July. Last month, it gained 1.8% and economists expected that same annual inflation rate for July.

Euro Declines Further Against Dollar And Yen Friday Morning, Friday, July 27, 2007 7:28:04 AM

The euro continued to struggle against the dollar and yen, slipping to multi-week lows against both, following the release of data showing that German consumer confidence was stable in July.

The euro extended losses from the previous session against the dollar Friday morning in New York, slipping to a multi-week low of 1.3643. Greenback traders looked ahead to Friday`s release of American GDP data for the second quarter.

The euro was choppy versus the sterling Friday morning in New York, slipping to .6706 in early dealing before bouncing back to fetch .673.

The euro extended a week-long downtrend against the yen Friday morning in New York, dropping to a month and a half low of 161.80. Japanese currency investors mulled data showing that core consumer prices fell as expected during June.

Yen Advances Versus Major Counterparts, Friday, July 27, 2007 7:02:53 AM

The yen advanced against its major counterparts Friday morning in New York. Japanese currency investors mulled data showing that core consumer prices fell as expected during June.

The yen edged higher versus the dollar Friday morning in New York. The Japanese currency advanced during the early morning, reaching an intraday high of 118.42 at 3:00 am ET. The yen gave back some of its gains over the next few hours to trade at a mark of 119.03 at 6:40 am. Greenback traders looked ahead to Friday`s release of American GDP data for the second quarter.

Against the euro, the yen advanced Friday morning in New York. After losing ground late Thursday, the Japanese currency rebounded during the early morning. After a hiccup just before 4:00 am ET, the yen continued to climb. At 6:40 am, the Japanese currency traded at an intraday high of 162.34. European currency investors mulled data showing that German consumer confidence was stable in July.

The yen climbed versus the sterling Friday morning in New York. After dropping late Thursday, the Japanese currency began to advance in the early morning. The yen pulled back from some of its gains just before 4:00 am ET, before gaining again after 5:00 am. At 6:45 am, the Japanese currency traded at a mark of 241.67 against its British counterpart.

Japan`s CPI fell 0.1% in June, falling for the fifth straight month, the Ministry of Internal Affairs said Friday. The result was in line with market expectations. The previous month also witnessed a decline of the same magnitude. The nationwide headline annual CPI remained unchanged in June, although the index edged up 0.1% over the prior month.

Swiss Franc Slips Against Dollar And Yen, Advances Versus Other Majors, Friday, July 27, 2007 6:45:44 AM

The Swiss Franc slipped versus the dollar and the Yen during the European session on Friday. But the Franc advanced against the Euro and the Pound. The uptrend helped the Franc to fetch the 3-week high versus the Euro and the 10-day high versus the Pound.

The German GfK consumer confidence data for August released at 2:10 am ET strengthened the Franc further against the Euro. The GfK`s consumer climate indicator is forecasting a reading of 8.7 points for August, a tad above the expected level of 8.6 points. The July reading was slightly revised up to 8.5 from 8.4 earlier.

The recent deals of the major Franc pairs came amid the release of the Swiss July KOF leading indicator data. Swiss KOF economic barometer improved to 2.13 in July. The number came in better-than-expected reading of 2.01.

The U.S. Q2 Gross Domestic Product is what the data expected by the traders as of now.

Against the U.S. dollar, the Swiss Franc traded between 1.2035 and 1.2054 during the Asian deals on Friday. However, in the early European session, the Franc lost ground. At about 5:30 am Eastern Time, the Franc gained a few pips but it traded down again within a few minutes. As of 6:44 am ET, the pair was quoted at 1.2128.

During the Asian session on Friday, the Swiss Franc ticked down versus the Euro. But the Franc bounced back in the early European deals and strengthened further. The Franc thus climbed from 1.6565 to 1.6509 at 3:00 am Eastern Time and this was the 3-week high for the Franc. Thereafter, the Franc slipped and collected 1.6540 as of 6:44 am ET.

The Swiss Franc lost ground against the British Pound in the Asian deals on Friday and touched 2.4695 at 10:30 pm ET Thursday. Soon after, the Franc rebounded and carried over its uptrend in the early European session. The Franc fetched the 10-day high of 2.4535 by about 3:00 am ET. The Franc then edged down and it is currently trading at 2.465.

The Swiss Franc advanced versus the Japanese Yen during the Asian session on Friday. At about 10:40 pm ET Thursday, after collecting as much as 99.04, the pair drifted down. The Franc extended its downtrend in the early European deals and as of 6:44 am Eastern Time, it was worth 98.13.

Euro Strengthens Against Pound, Down Against Rest Of Majors Early Friday, Friday, July 27, 2007 6:08:58 AM

The euro remained strong against the sterling but weakened against the rest of majors during the early deals on Friday. However, of late, most of today`s losses against the Swiss franc have been reversed, and the pair is now trading at a level a little above its Thursday`s New York session close.

By virtue of early Friday`s deals, the common currency has confirmed the upward momentum it gained against the sterling yesterday, pulling the pair off a 5-month low and placing it at a 4-day high. At the same time, the European currency continued its downward journey against the yen started on Monday and gave back the advancements it gained vis-а-vis the greenback yesterday.

Deals in the Euro-pairs took place amid the release of the German GfK consumer confidence data at 2:10 am ET. Investors are now waiting for the Swiss KOF leading indicators, which has been slated for release at 5:30 am, followed by the US gross domestic product data later in New York morning.

The GfK`s consumer climate indicator is forecasting 8.7 points for August, slightly up from the market consensus of 8.6 points. The July reading was revised up to 8.5 from 8.4 earlier.

The euro fell heavily against the US dollar in early European deals on Friday, giving back the gains it posted yesterday. Falling from its Asian range of 1.3735-1.3750, the pair hit as low as 1.3658 by about 4:45 am ET, which set a 10-day low for the common currency. Since then, the pair has been holding steady.

Against the yen, the euro slipped in late New York trading on Thursday extending its intra-day losses and hit a new multi-week low of 162.21 by about 5:30 pm ET. The pair remained higher in the Japanese deals on Friday, but these gains were given back during the European deals. Of late, the pair has been seeing uncertainty in direction, yet a little below its previous day`s close of 163.12. The pair has been now trading near 162.85, compared to an Asian high of 163.92.

The euro improved against the sterling in the early deals on Friday. The pair moved sideways a little above its previous day`s New York session close through the early Asian deals but staged a spike towards the end of the session. However, after hitting a 4-day high of 0.6731 by about 2:40 am, the single currency has dropped some of the gains and is now trading near 0.6710. Gains collected by the euro on Friday continued its uptrend it started against the sterling the previous day, lifting it from a 5-month low.

Reversing yesterday`s trend, the euro moved up against the franc in early Asian deals on Friday. But the common currency failed to sustain the momentum as it fell in the European deals and moved deeper than its Thursday`s low. The pair thus hit a 3-week low of 1.6509 by about 3:00 am ET but has bounced back to its Asian high lately. As of now, the euro has been trading near 1.655 francs. The Swiss KOF leading indicator data, which was released at 5:30 am, has not moved the pair visibly.

Greenback Surges Against Singapore And Malaysian Counterparts, Friday, July 27, 2007 4:14:04 AM

The U.S. currency surged against its Singapore and the Malaysian counterparts during the Asian deals on Friday. The Greenback fetched the 9-day high versus the Singapore dollar and the 1-month high versus the Malaysian Ringgit. On the other hand, the Greenback showed slight strength versus the Thai Baht, but it was down against the Hong Kong dollar.

Against the Indonesian Rupiah and the Philippine Peso, the Greenback largely traded in a loose range during the session, but it has been strengthening slightly of late. However, the Greenback ticked up versus the Indian Rupee and the South Korean Won and collected the 15 and 17-day highs respectively.

The South Korean current account data for June released during the session is likely to have an effect on trading in the Greenback against the South Korean Won. The Bank of Korea announced that current account surplus grew to $1.5 billion in June from a revised $839.1 million in May.

The market now turns toward the U.S. Q2 GDP data which is slated for 8:30 am ET.

During the early Asian deals on Friday, the U.S. currency gained ground versus the Singapore dollar. At about 9:35 pm ET Thursday, the Greenback fell briefly but it moved sideways within half an hour which was limited between 1.5147 to 1.5157. However, the pair regained it momentum again at about 1:55 am Eastern Time and fetched the 9-day high of 1.518 within an hour. The pair then lost a few pips.

Against the Hong Kong dollar, the U.S. currency edged lower in the early Asian deals on Friday and touched the low of 7.8200 at 9:40 pm ET Thursday. The Greenback then gained a few pips and moved between 7.8215 to 7.8225.

After a brief downtrend, the U.S. dollar ticked up versus the Thai Baht during the early Asian session on Friday. The dollar thus climbed from 33.65 to 33.75 at 10:30 pm ET on Thursday. The pair then traded sideways, but it made a brief spike higher at 2:20 am ET and fetched 33.77. Currently, the pair has been losing the recent gains

In the early Asian session on Friday, the U.S. dollar trended higher against the Malaysian Ringgit. The dollar hit the 1-month high as 3.4715 by about 9:15 pm Eastern Time Thursday. Thereafter, the pair showed a choppy trend.

The U.S. dollar traded in a loose range between 0.9100 and 0.9215 versus the Indonesian Rupiah in the Asian deals on Friday. However, at about 2:15 am Eastern Time, the pair started strengthening and it is currently at 0.923.

Against the Philippine Peso, the U.S. currency moved between 45.11 and 45.75 during the Asian session on Friday. But the pair moved out of that range at 2:40 am Eastern Time and it is currently trading at 45.87.

During the Asian deals on Friday, the U.S. dollar drifted up versus the Indian Rupee and collected as much as 40.55 by about 12:20 am Eastern Time. This was the 15-day high for the dollar. The pair then moved sideways.

The U.S. currency advanced against the South Korean Won in the early Asian deals on Friday. After fetching the 17-day high of 922.45 at 8:20 pm ET Thursday, the pair dropped slightly and then showed choppy trading. However, at about 2:05 am ET, the Greenback gave back the gains and held steady at 917.40.

Thursday, July 26, 2007

Dollar Sees Mixed Trading Ahead Of German IFO Business Climate, Thursday, July 26, 2007 2:30:56 AM

The US currency slipped against the European majors in late New York trading on Wednesday but the pairs reversed the losses in the early Asian deals on Thursday. Of late, the greenback has been seeing mixed performance.

Largely, the dollar held its multi-day highs gained on Wednesday against the major currencies through late trading on the day and in the Asian deals on Thursday. Against the yen, the greenback improved further, confirming its reversal from a 10-week low, which was hit yesterday.

On Wednesday, the US currency gained momentum in the European deals and continued higher in the North American deals despite a brief trend downwards on the way. Data release showed that the existing home sales decreased more than expected in June in the US, while the prices recorded a modest increase.

The British Nationwide house prices declined more anticipated in June according to the official release at 2:00 am ET amid which the pound declined against the dollar.

Following the Nationwide data, the markets are waiting for the German July IFO business climate indicator expected at 4:00 am ET. However, investors are focusing on the US new home sales and durable goods orders data expected late in the morning.

The dollar slid against the euro in late New York trading on Wednesday and the pair hit as low as 1.3727 compared to the previous session close of 1.3713. The pair, however, reversed the losses in the early Asian deals on Thursday, but it changed its direction toward the end of the session. Investors are looking forward to the German July IFO business climate indicator at 4:00 am ET.

Against the sterling, the dollar weakened slightly in late New York deals on Wednesday but rebounded in early Asian deals on Thursday. On the way up 2.0541, the pair lost the momentum by about 10:45 pm but has regained it lately, pushed by a slower-than-expected house price inflation number released by the Nationwide. As of now, the pair has been trading near 2.0485 compared to its preceding day`s New York session close of 2.0522.

Against the Swiss franc, the US dollar dipped to 1.2127 from 1.2136 in late New York trading on Wednesday but held steady a little above 1.2136 through much of the Asian deals on Thursday. However, the pair staged a short spike at about 2:00 am ET, likely influenced the British release. As of now, the pair has been trading near 1.2146.

The US dollar held a tight range against the Japanese yen during late New York trading on Wednesday but moved up to 120.73 from 120.50 in the early Japanese deals on Thursday. The Japanese Corporate goods and services price indices were released at 7:50 pm ET Wednesday, which is likely to have influenced the deals around then. However, thereafter, the pair saw directionless trading, largely bouncing between 120.40 and 120.65.

Aussie Partly Gives Back Previous Session`s Gain In Early Asian Deals On Thursday, Thursday, July 26, 2007 1:31:31 AM

During the early Asian deals on Thursday, the Australian dollar partly gave back the gains posted in the late New York trading against its major counterparts. No major key economic data was released from the Australian economy during the session.

The Japanese June corporate service price index data released at 7:50 pm ET is likely to have an effect on trading in the Aussie against the Yen. Japan`s Corporate Service Price Index or CSPI rose 0.1% in June to 94.3 from the previous month. On year-over-year basis the index rose 1.4%, in line with analysts` expectation.

German IFO - Business climate for July is what the data expected by the traders during the upcoming European session. The US June durable goods orders and the new home sales data are slated for later in the morning.

The Australian dollar drifted higher versus U.S. currency during late Wednesday in New York and collected as much as 0.8864 at 7:30 pm ET. But the Aussie dropped in the early Asian deals on Thursday and touched 0.8828 by about 10:45 pm Eastern Time. Thereafter, the pair gained slightly and as of 1:30 am ET, it was quoted at 0.8846.

On late Wednesday in New York, the Australian dollar ticked up against its European counterpart. However, in the early Asian deals on Thursday, the Aussie edged down slightly and thus it moved from 1.5482 to 1.5532 at about 10:45 pm ET. Soon after, the Aussie strengthened slightly and collected 1.5500 as of 1:30 am Eastern Time.

The Australian currency showed strength versus the Canadian dollar in the late hours on Wednesday in New York. After fetching a high of 0.9229 at 7:30 pm ET, the pair traded sideways but it lost ground within an hour. At about 11:10 pm Eastern Time, the Aussie made a brief spike higher but it weakened again soon after. As of 1:30 am ET Thursday, the pair was worth 0.9210.

Against the Japanese Yen, the Australian dollar advanced during late Wednesday in New York. But the pair moved in an opposite direction in the early Asian session on Thursday. The Aussie thus declined from 106.87 to 106.35 at 10:45 pm ET. The pair then traded slightly higher and as of 1:30 am Eastern Time, it fetched 106.59.

New Zealand Dollar Falls Against Majors Amid RBNZ Rate Hike, Thursday, July 26, 2007 12:32:37 AM

Following the release of the Reserve Bank of New Zealand`s rate decision at 5:00 pm ET on Wednesday, the New Zealand dollar fell sharply against the other major currencies. As widely expected, the Reserve Bank of New Zealand raised the official cash rate by 25 basis points to 8.25%.

However, the major Kiwi pairs gained a few pips within half an hour and then traded sideways. But the Kiwi ticked down again at about 9:10 pm ET. The downtrend pushed the Kiwi to touch the 4-day low versus the Greenback, 10-day low versus the Yen and the 1-week low versus the Aussie. On the other hand, the Kiwi hit the yesterday`s level against the Euro.

The Japanese June corporate service price index data released at 7:50 pm ET caused very little price action in the Kiwi-Yen pair. Japan`s Corporate Service Price Index or CSPI rose 0.1% in June to 94.3 from the previous month. On year-over-year basis the index rose 1.4%, in line with analysts` expectation.

German IFO - Business climate for July is what the data expected by the traders during the upcoming European session. The US June durable goods orders and the new home sales data are slated for later in the morning.

The New Zealand dollar moved sideways against the U.S. currency during the afternoon deals on Wednesday in New York and this came ahead of the release of the RBNZ rate decision. However, amid the release, the Kiwi declined sharply, but by about 5:20 pm ET it ticked up slightly and moved sideways thereafter. The Kiwi weakened again at about 9:10 pm ET and touched the 4-day low of 0.7961 at 10:45 pm Eastern Time. The pair then gained a few pips and as of 12:30 am ET Thursday, it collected 0.7993.

During the afternoon deals on Wednesday in New York, the New Zealand dollar showed a choppy trend versus the European currency. At about 5:00 pm Eastern Time, following the release of the RBNZ rate decision, the Kiwi ticked down but it strengthened slightly within half an hour and then moved sideways. The Kiwi lost ground again at about 9:10 pm ET and hit as low as 1.7222. Lately, the Kiwi has been reversing the losses and as of 12:30 am ET Thursday, it was worth 1.7152.

Ahead of the release of the RBNZ rate decision, the New Zealand dollar trended lower against the Japanese Yen. Amid the release, the pair edged further lower. However, at about 5:20 pm Eastern Time, the Kiwi advanced slightly and then showed a choppy trend. But the pair slipped again at about 9:10 pm ET and touched the 10-day low of 95.91 within two hours. Thereafter, the Kiwi picked up a few pips and fetched 96.43 as of 12:30 am ET Thursday.

The New Zealand dollar made a sharp fall versus the Aussie at 5:00 pm ET on Wednesday and this came amid the release of the RBNZ rate decision. But the Kiwi gained slightly within half an hour and then traded sideways. However, at about 9:10 pm Eastern Time, the Kiwi drifted down again and hit the 1-week low of 1.1093 by about 10:45 pm ET. The Kiwi then advanced slightly and traded at 1.1071 as of 12:30 am ET Thursday.

Wednesday, July 25, 2007

Eastern European Currencies Fall Versus Dollar, Wednesday, July 25, 2007 7:25:23 AM

Eastern European currencies slid against the American dollar Wednesday morning in New York. Greenback traders looked ahead to Wednesday`s release of the Federal Reserve`s Beige Book.

The Hungarian forint retreated versus the dollar Wednesday morning in New York. The Hungarian currency experienced uncertain trading until beginning to slide after 3:00 am ET. By 6:30 am, the forint fell to an intraday low of 179.7500 against its American counterpart. Over the next forty minutes, the Hungarian currency rebounded to trade at a mark of 179.3300 at 7:13 am.

The Russian rouble fell against the greenback Wednesday morning in New York. The Russian currency traded with uncertainty before beginning to slide just before 3:00 am ET. At 7:16 am, the rouble traded at a mark of 25.4720 against its American counterpart.

The Polish zloty lost ground against the dollar Wednesday morning in New York. The Polish currency experienced uncertain trading before retreating just after 3:00 am ET. At 6:30 am, the zloty dipped to an intraday low of 2.7606 at 6:30 am. The Polish currency rebounded a bit from its losses over the next hour to trade at a mark of 2.7537 at 7:20 am. Traders considered the Polish central bank`s decision to hold its key interest rate steady.

Euro Races Lower Against Dollar And Yen Wednesday Morning, Wednesday, July 25, 2007 7:24:13 AM

The euro was generally weaker to other major currencies Wednesday morning in New York, dropping to multi-week lows against the yen and dollar while staying near a 5-month trough versus the sterling.

The euro raced lower against the dollar in early dealing Wednesday morning, dropping from record high in the previous session to a 2-week low. The euro fetched 1.3735 approaching mid-morning, down from an overnight level near 1.38. ahead of the National Association of Realtors report on June existing home sales

The euro stayed near a 5-month low against the sterling Wednesday morning in New York, slipping to .6690 from an overnight level near .671. Sterling investors looked ahead to Thursday`s release of nationwide housing prices for July.

The euro slipped to a 4-week low against the yen Wednesday morning in New York, dropping to 165 as traders considered data showing that the Japanese merchandise trade surplus grew better-than-expected in June.

Yen Mixed Versus Major Counterparts, Wednesday, July 25, 2007 6:54:08 AM

The yen experienced mixed results versus its major counterparts Wednesday morning in New York. The Japanese currency advanced to a nearly one-month high against the euro and also gained ground versus the pound. Meanwhile, the yen retreated versus the dollar. Traders considered data showing that the Japanese merchandise trade surplus grew better-than-expected in June.

The yen fell against the dollar Wednesday morning in New York. The Japanese currency experienced choppy trading before beginning a retreat just after 5:00 am ET. By 6:30 am, the yen slid to a mark of 120.44. This is compared to an intraday high of 119.92 just before 3:00 am. Greenback traders looked ahead to Wednesday`s release of the Federal Reserve`s Beige Book.

Against the euro, the yen advanced to a nearly one-month high Wednesday morning in New York. The Japanese currency slid during the early morning, dipping to an intraday low of 166.22 at 1:20 am ET. The yen advanced after that, reaching an intraday high of 165.03 just after 5:00 am. The Japanese currency gave back some of its gains over the next couple of hours to trade at a mark of 165.30 at 6:45 am. European currency investors considered data showing that French business confidence was unchanged in July, matching expectations.

The yen edged higher versus the sterling Wednesday morning in New York. At 6:45 am ET, the Japanese currency traded at a mark of 246.96. This is compared to an intraday high of 246.46 just after 5:00 am and an intraday low of 247.91 at 1:20 am. Sterling investors looked ahead to Thursday`s release of nationwide housing prices for July.

Japanese merchandise trade surplus grew better-than-expected in June, the Ministry of Finance announced Wednesday. The trade surplus surged not seasonally adjusted 53.4% annually to 1.227 trillion yen in June. Economists were looking for an excess of 955.0 billion yen. In May, the trade surplus reached 385.1 billion yen, up 8.1%. Compared to the same month last year, exports improved 16.2% to 7.284 trillion yen. The total electrical machinery exports advanced 7.3% annually, of which semiconductors gained 7.8%.

Pound Sees Mixed Trading During Early Deals On Wednesday, Wednesday, July 25, 2007 6:42:11 AM

The British currency saw mixed trading in early deals on Wednesday. The pound fell to a 5-day low against the greenback, while reversing its Tuesday`s losses against the euro. Against the Swiss franc, the sterling was down in the early Asian deals but gaining ground, the pair has bounced back to its yesterday`s peak lately. On the other hand, the cable has been seeing directionless trading against its Japanese counterpart.

The recent deals in the pound-pairs took place amid a lack of key data releases from the British economy. The markets are now focusing on the US existing home sales data for June, which has been scheduled to be released at 10:00 am ET. The Federal Reserve`s Beige Book for the August 7 FOMC meeting will be the next release investors likely to scrutinize.

The next important British fundamental expected is the Nationwide house prices data for July, which has been slated for release at 2:00 am ET, Thursday. The prices are expected to grow at a slower rate in the month of July compared to the previous month.

The pound slipped against the dollar in early Asian deals on Wednesday but reversed the losses during the later part of the session. However, the sterling lost its momentum at about 1:45 am ET, and moving from 2.0614, it has lately equaled as low as 2.0514. This set a 5-day low for the sterling and if it weakens further, 2.0480 can likely be the next level of support.

Down from Tuesday`s New York session close of 247.59, the sterling moved to a 2-week low of 246.25 against the Japanese yen in the early Asian deals on Wednesday. The sterling weakened amid a stronger-than-expected Japanese merchandise trade balance data, but the losses were reversed shortly thereafter. However, the pair dropped off again in the European deals despite a lack of key economic releases in the session. Of late, the pair has leveled its early Asian low, with near term support level probable around 245.00.

Against the Swiss franc, the sterling slid in the early Asian deals on Wednesday extending its losses on Tuesday. Compared to its intra-day high of 2.4900, the pair hit as low as 2.4753 by about 9:15 pm ET but reversed its direction shortly. Rallying from there, the pair has reversed most of the losses it suffered the previous day, and it is now trading near 2.488.

The pound drifted lower against the euro in late New York trading on Tuesday but it has reversed the losses lately. Gaining momentum at about 9:00 pm ET, the pair has moved to 0.6689 from 0.6712 lately. As of now, the pair is a little below the 5-month high hit yesterday with immediate resistance and support levels in the near term seen around 0.6770 and 0.6650 respectively.

Swiss Franc Lower Across The Board During European Session On Wednesday, Wednesday, July 25, 2007 6:41:27 AM

The Swiss Franc drifted lower against the other major currencies during the European session on Wednesday. The downtrend pushed the Franc to touch the 40-day low versus the Yen and the 15-day low versus the dollar.

However, in the Asian deals, the Franc showed a mixed performance. The Franc slipped against the Yen, but it strengthened versus the Euro and the Cable. On the other hand, the Franc moved sideways against the dollar. Deals in the session were likely influenced by the Japanese June trade balance data.

Japan`s merchandise trade surplus surged 53.4% in June to 1,227.11 billion yen from 799.74 billion yen a year ago. Analysts expected a trade surplus of 955.0 billion yen for June.

The traders are now looking for the U.S. June existing home sales data which is slated for 10:00 am ET, followed by the release of the Fed`s Beige Book for August 7 FOMC meeting at 2:00 pm ET.

Against the U.S. dollar, the Swiss Franc traded between 1.2031 and 1.2046 in the Asian deals on Wednesday. But the Franc fell sharply during the early European session and touched the 15-day low of 1.2134 at 5:05 am Eastern Time. The Franc then gained a few pips and traded at 1.2125 as of 6:39 am ET.

During the early Asian deals on Wednesday, the Swiss Franc gained slightly versus the European currency, but the gains were given back at 9:00 pm ET Tuesday. However, at about 2:45 am Eastern Time, the Franc picked up a few pips but it dropped soon after. The Franc hit a low of 1.6664 by about 4:30 am ET. Thereafter, the pair moved sideways and as of 6:39 am ET, it was quoted at 1.6659.

The Swiss Franc traded higher against the U.K.`s Cable during the early Asian session on Wednesday. However, at about 9:30 pm ET Tuesday, the Franc gave back the gains completely and extended its downtrend in the early European deals. The Franc thus dropped from 2.4756 to 2.4882 by about 5:05 am Eastern Time. Currently, the pair has been trading sideways and collected 2.4875 as of 6:39 am ET.

Following the release of the Japanese June trade balance data during the early Asian deals on Wednesday, the Swiss Franc lost ground versus the Japanese Yen. At about 9:10 pm Eastern Time Tuesday, the pair made some advances but it drifted down again in the early European session. The Franc hit the 40-day low of 99.10 by about 5:15 am ET and then strengthened slightly. As of 6:39 am ET, the pair was worth 99.26.

Tuesday, July 24, 2007

Treasuries Edge Higher Tuesday As Stocks Slide, Tuesday, July 24, 2007 4:37:06 PM

Treasuries gained ground on Tuesday, with the yield on the 10-year benchmark note falling 2 basis points. A weak performance on Wall Street and lingering concerns about the subprime mortgage market pushed money into fixed income. With the 10-year yield holding steady below 5% for the third consecutive session, the bond market appears to be settling into a range. Tomorrow, the market could see movement following the release of housing data scheduled for 10:00 AM Eastern Time.

Concerns about the immediate future of the U.S. economy and falling stock prices sparked the recent advance in bonds, with the Dow hitting a stumbling block after reaching record highs last week. Uncertainty on Wall Street has investors transferring money into fixed income, driving yields lower. Investors are hoping for clearer information on the state of the US economy when a few key reports are released later this week.

At Tuesday`s close the yield on the 10-year benchmark note was down 2.0 basis points to 4.944%.

Treasuries have seen uncertain trading since mid-June, when yields began to come off their multi-year highs. Trading has been increasingly choppy, and Friday yields closed below 5% for the first time since early June. Wall Street took a hit on Tuesday due to disappointing earnings results from some major companies, continued problems in the housing market, and investors` anxiety over a bullish streak amidst a slowing economy.

Investors will be paying close attention to several reports scheduled for release beginning tomorrow. Data on existing home sales is the first report of the week which is expected to prick up investors ears. Thus far, the general consensus on the report is not expecting the housing market to see any respite from its worst slump in nearly two decades. Rather, home sales for June are widely anticipated to come in as the worst month for existing home sales in four years. The housing sector has cast a dark shadow over an otherwise strong economy, due in large part to problems with subprime mortgages. Problems in the housing markets were cited as a chief area of concern for the economy by Federal Reserve Chair Ben Bernanke.

Two other reports, on durable good orders and gross domestic product, are expected to be more uplifting than data on existing home sales. The reports should give investors an idea of where the economy stands. Durable goods orders, released Thursday, measure orders for items meant to last more than 3 years, giving a glimpse at the health of manufacturing. The report on GDP statistics, scheduled for Friday, is seen as a good indicator of overall economic performance.

In May, durable good orders fell 2.8 percent in following three consecutive increases. However, in June analysts expect to see a 2.0 percent increase for new orders. With regards to GDP, many economists expect an improvement from the meager 0.7 percent growth seen in the first quarter, thanks to more exports and increased inventory investment.

Japanese Yen Moves Little On Tuesday Against Majors, Tuesday, July 24, 2007 2:24:41 PM

The yen was choppy against its world counterparts in trading on Tuesday afternoon in New York. The currency moved ahead of CPI data from all of Japan and Tokyo due out on Thursday.

The yen moved little against its American counterpart in trading on Tuesday. The currency moved between a high of 120.45 and a low of 120.92 as action progressed into the mid afternoon. On the whole, the yen is at its highest point against the buck since mid May.

In trading against the sterling on Tuesday, the Japanese currency saw uncertain direction into the mid afternoon. The yen bounced between a low of 249.35 and a high of 248.49 as trading progressed. In general, the Japanese yen is near a weekly high versus the British currency.

Versus the euro, the yen saw little movement through trading on Tuesday. As action moved into the mid afternoon, the Japanese currency moved in a range between a low of 167.27 and a high of 166.40. Overall, the yen is at a three week high against its European counterpart.

British Currency Moves Little Against Majors On Tuesday Afternoon, Tuesday, July 24, 2007 2:11:53 PM

The British currency moved little against its counterpart in trading on Tuesday mid afternoon in New York. The pound moved as data was released regarding growth in demand for UK manufactured goods.

The sterling saw little movement against the dollar in trading on Tuesday. As action moved into the mid afternoon, the cable bounced between a high of 2.0647 and a low of 2.0596. Overall, the British currency is at a multi-year high versus the greenback.

The British currency moved little against its European counterpart in action on Tuesday. By the mid afternoon, the pound had held between a low of 0.6710 and a high of 0.6690. On the whole, the British mark is at its highest point against the European currency since February.

In trading against the yen on Tuesday, the British currency saw uncertain direction into the mid afternoon. The sterling bounced between a high of 249.35 and a low of 248.49 as trading progressed. In general, the British pound is near a weekly low versus the Japanese currency.

Growth in demand for UK manufactured good remain firm, despite a slight slow down. The order book balance fell to minus 6% in July from plus 8% in June. In May, the balance was plus 5%, while in April, it stood at plus 2%.

Latin American Currencies Fall Versus Dollar, Tuesday, July 24, 2007 2:07:57 PM

Latin American currencies fell versus the dollar Tuesday in New York. Greenback traders looked ahead to Wednesday`s release of the Federal Reserve`s Beige Book.

The Mexican peso retreated against the dollar Tuesday in New York. The Mexican currency fell over the bulk of the morning, dipping to an intraday low of 10.7942 at 11:40 am ET. The peso rebounded from some of its losses into the early afternoon to trade at a mark of 10.7905 at 1:46 pm. Traders considered data showing that the Mexican CPI increased during the first half of July.

The Brazilian real slid versus the dollar Tuesday in New York. The Brazilian currency experienced largely choppy trading during the early and mid-morning before beginning to retreat just before 8:00 am ET. At 12:12 pm, the real slid to an intraday low of 1.8510 against its American counterpart. By 12:47 pm, the Brazilian currency rebounded slightly to a mark of 1.8500 against the buck.

Euro Moves Little Against Pound & Yen, Reaches New Highs Versus Dollar, Tuesday, July 24, 2007 1:57:43 PM

While the euro rose to a new high against the dollar in trading on Tuesday in New York, the currency moved little overall against the majors. The euro moves as new industrial orders and account deficit data was released for the area.

In trading against the dollar on Tuesday, the euro hit a fresh all time high against the buck in the morning when it hit 1.3844. However, the European currency was unable to hold onto its high and slipped back down to 1.3818 by the mid afternoon. Generally, the euro remains near record highs against the American currency.

The European currency moved little against its British counterpart in action on Tuesday. By the mid afternoon, the euro had held between a high of 0.6710 and a low of 0.6690. On the whole, the European mark is at its lowest point against the cable since February.

Versus the yen, the euro saw little movement through trading on Tuesday. As action moved into the mid afternoon, the European currency moved in a range between a high of 167.27 and a low of 166.40. Overall, the euro is at a three week low against its Japanese counterpart.

New industrial orders in the euro area grew 1.7% on a monthly basis in May. The growth in May reverses a slide of 0.6% in new industrial orders in April, revised up from a drop of 0.4% estimated initially. Economists were looking for an increase of 1.2%. In addition, the Euro zone`s current account deficit widened to a working day and seasonally adjusted 8.6 billion euros in May. This compares with the deficit of 1.6 billion euros in the last month, revised up from a deficit of 4 billion euros initially estimated.

Monday, July 23, 2007

Eastern European Currencies Retreat Versus Dollar, Monday, July 23, 2007 7:19:48 AM

Eastern European currencies retreated against the dollar Monday morning in New York. Greenback traders looked ahead to Wednesday`s release of the Federal Reserve`s Beige Book.

The Hungarian forint slid versus the dollar Monday morning in New York. The Hungarian currency advanced during the early morning, reaching an intraday high of 177.0800 at 1:50 am ET. The forint fell steadily after that, however, dipping to a mark of 177.9700 at 7:11 am.

The Russian rouble fell against the greenback Monday morning in New York. The Russian currency gained ground during the early morning, climbing to an intraday high of 25.3670 at 2:00 am ET. The rouble retreated steadily after that, falling to 25.3990 at 7:15 am.

The Polish zloty retreated against the dollar Monday morning in New York. The Polish currency gained ground during the early morning, advancing to an intraday high of 2.7133 at 3:10 am ET. The zloty fell steadily after that, dipping to a mark of 2.7274 at 7:17 am.

Yen Generally Weaker Against Major Counterparts, Monday, July 23, 2007 6:51:57 AM

The yen generally weakened versus its major counterparts Monday morning in New York. The Japanese currency lost a little bit of ground versus the dollar and the sterling. Meanwhile, the yen experienced mostly uncertain trading with the euro. Traders considered data showing that supermarket sales in Japan fell again in June.

The yen edged slightly lower versus the dollar Monday morning in New York. The early morning was dominated by uncertain trading until the Japanese currency began to slide at about 4:30 am ET. At 6:00 am, the yen fell to an intraday low of 121.49. By 6:40 am, the Japanese currency rebounded to a mark of 121.22 against its American counterpart. Greenback traders looked ahead to Wednesday`s release of the Federal Reserve`s Beige Book.

Against the euro, the yen was largely uncertain Monday morning in New York. At 6:40 am ET, the Japanese currency traded at a mark of 167.38 against its European counterpart. This is compared to an intraday high of 167.09 just before 3:30 am and an intraday low of 167.69 at 6:00 am. European currency investors looked ahead to Tuesday`s release of the German import price index for June.

The yen fell slightly against the sterling Monday morning in New York. The Japanese currency experienced uncertain trading before retreating at 4:30 am ET. By 6:45 am, the yen slid to a mark of 249.26 against its British counterpart. Traders considered data showing that U.K. housing prices fell in July.

Japan supermarket sales continue to fall in June Japanese supermarket sales fell 1.5% from the previous year to 1.13 trillion yen in June, the Japan Chain Stores Association said Monday. This followed a 0.6% decline in the prior month. Supermarket sales, before store adjustment dropped 1.3% in June, after rising 1.1% in the prior month.

British Pound Mixed In Trading Against Majors During European Session On Monday, Monday, July 23, 2007 6:26:27 AM

The British Pound showed a mixed performance against its major counterparts during the European session on Monday. While the Pound traded higher versus the Euro and the Swiss Franc, it gave back the previous session`s gain against the dollar. On the other hand, the Pound showed a choppy trend versus the Yen.

During the Asian deals, the Pound ticked up versus the dollar and the Euro. The uptrend helped the Pound to fetch the new multi-year high of 2.0605. However, the Pound dropped versus the Yen, but it moved sideways against the Swiss Franc.

The British Rightmove house prices data for July released at 7:01 pm ET on Sunday is likely to have influenced the major Pound pairs. According to the latest Rightmove survey results, the UK house prices rose slower in July.

No major key economic data is expected from the U.S. economy during the North American session of the day.

The British currency gained ground versus the U.S. dollar in the Asian deals on Monday. The uptrend helped the Cable to collect the new multi-year high of 2.0605 at 2:05 am Eastern Time. Soon after, the pair gave back the gains and fetched 2.0566 as of 6:25 am ET.

In the early Asian deals on Monday, the U.K.`s Sterling trended higher against the Euro . However, at about 10:45 pm ET Sunday, the Sterling shed a few pips and then traded sideways. But the Sterling steadied higher again during the early European session and traded at 0.6713 as of 6:25 am Eastern Time.

The British Pound edged lower versus the Japanese Yen during the early Asian session on Monday. The pair touched as low as 248.53 by about 9:30 pm ET Sunday and then showed a choppy trend. The Pound extended the same trend in the early European session, but it has been trading slightly higher of late. As of 6:25 am Eastern Time, the pair fetched 249.42.

Against the Swiss Franc, the U.K.`s Cable moved sideways in the Tokyo deals on Monday. But the pair ticked up at the end of the session and carried over its uptrend in the early European session. As of 6:25 am Eastern Time, the pair traded at 2.4769.

Euro Strengthens Slightly Against Swiss Franc, Declines Versus Other Majors, Monday, July 23, 2007 5:32:44 AM

During the early European session on Monday, the Euro strengthened slightly versus the Swiss Franc, but it declined against the rest of majors. This came despite a lack of data from the European economy during the session.

However, in the previous session, the Euro showed a choppy trend versus the dollar, but it drifted down against the other majors.

The British Rightmove house prices data for July released at 7:01 pm ET on Sunday is likely to have an effect on trading in the Euro against the Sterling. According to the latest Rightmove survey results, the UK house prices rose slower in July.

No major key economic data is expected from the U.S. economy during the North American session of the day.

The European currency showed choppy trading versus the U.S. dollar during the Asian deals on Monday. At about 1:15 am Eastern Time, the Euro advanced slightly but it lost ground within an hour. The Euro extended its downtrend in the European session and traded at 1.3815 as of 5:30 am ET.

Against the Japanese Yen, the Euro ticked down during the early Asian session on Monday. The pair gained slightly at 9:30 pm Eastern Time Sunday, but it slipped soon after. The Euro touched the 12-day low of 167.08 at 3:30 am ET and then traded slightly higher. As of 5:30 am ET, the pair was quoted at 167.39.

In the early Asian deals on Monday, the Euro trended lower versus the U.K.`s Sterling. However, at about 10:45 pm ET Sunday, the pair gained a few pips and then traded sideways. But the Euro edged lower in the early European session and collected 0.6715 as of 5:30 am Eastern Time.

The Euro declined against its Swiss counterpart in the early Tokyo session on Monday. After hitting as low as 1.6583 at 9:20 pm ET Sunday, the pair showed a choppy trend. However, in the early European deals, the euro strengthened slightly and as of 5:30 am Eastern Time, it was worth 1.6627.

Dollar Sees Mixed Trading Against Southeast Asian Currencies, Monday, July 23, 2007 3:22:05 AM

The U.S. dollar saw a mixed trading against the Southeast Asian currencies during the Tokyo deals on Monday. While the dollar advanced versus the Thai Baht, it slipped against its Singapore and the Malaysian counterparts. But the U.S. dollar largely moved sideways against the Hong Kong dollar.

On the other hand, the dollar gained slightly versus the Indian Rupee, but it was down against its Philippine, Indonesian and the South Korean counterparts.

The Singapore Consumer Price Index data which was released during the session is likely to have influenced the deals in the Greenback against the Singapore dollar. Singapore consumer prices index- CPI declined 0.3% on month in June. The decline reversed the 0.3% gain logged last month. On a yearly basis, the CPI advanced 1.3% in June, bettering the 1.0% rise in the previous month.

No major key economic data is expected from the U.S. economy during the North American session on Monday.

The U.S. currency traded between 1.5112 and 1.5121 versus the Singapore dollar in the early Asian deals on Monday. The Greenback fell sharply at 12:30 am Eastern Time, but it bounced back within a few minutes. Soon after, the pair lost ground again and it is currently trading at 1.509.

After a brief slid, the U.S. currency moved sideways against the Hong Kong dollar during the early Asian session on Monday. The Greenback declined slightly again at about 12:20 am ET, but it rebounded soon after. As of now, the pair is trading at 7.8203.

In the early Asian deals on Monday, the U.S. dollar dropped slightly versus the Thai Baht. Off 33.60 at 10:10 pm ET Sunday, the dollar reversed the losses and advanced further to 33.71 by about 2:45 am ET. Thereafter, the pair lost a few pips and it is currently trading at 33.69.

Against the Malaysian Ringgit, the U.S. dollar traded slightly higher as the Asian deals started on Monday. However, at about 8:20 pm Eastern Time Sunday, the dollar gave back the gains and edged further lower. As of now, the pair is trading at 3.4100.

The U.S. dollar showed weakness versus the Indonesian Rupiah in the early Asian session on Monday. The downtrend pushed the dollar to hit as low as 0.9057 at 1:20 am Eastern Time. The pair then gained some momentum and entered a loose range.

During the early Asian session on Monday, the U.S. currency slipped against its Philippine counterpart and touched a low of 44.87 by about 10:45 pm ET Sunday. The pair then showed a choppy trend.

The U.S. dollar showed choppy trading versus the Indian Rupee during the early Asian deals on Monday. At about 11:10 pm ET Sunday, the dollar started trading higher and thus it climbed from 40.14 to 40.38 within half an hour. Thereafter, the pair moved sideways.

Against the South Korean Won, the U.S. dollar moved sideways in the early Tokyo session on Monday. But the pair ticked down at about 11:50 pm Eastern Time Sunday and touched a low of 915.00 by about 1:50 am ET. Soon after, the dollar rebounded and held steady at 916.10.

Japanese Yen Advances Against Majors In Early Asian Deals On Monday, Monday, July 23, 2007 1:41:35 AM

The Japanese Yen advanced against the other major currencies during the early Asian deals on Monday. The uptrend helped the Yen to fetch the 1 Ѕ - month high of 120.80 versus the dollar. However, against the other major currencies, the Yen reached the Friday`s level.

The British Rightmove house prices data for July released at 7:01 pm ET on Sunday is likely to have an effect on trading in the Yen against the Pound. According to the latest Rightmove survey results, the UK house prices rose slower in July.

No major key economic data is expected during the upcoming European session.

The Japanese Yen opened this week`s account versus the U.S. dollar at 121.26. During the late afternoon deals on Sunday in New York, the Yen edged down and touched 122.22 by about 4:00 pm Eastern Time. Soon after, the Yen bounced back and carried over its uptrend in the early Asian deals on Monday. The Yen collected the 1 Ѕ - month high of 120.80 at 9:30 pm ET and then moved sideways. As of 1:40 am ET, the pair was quoted at 120.98.

Against the Euro, the Japanese Yen ticked down on late Sunday afternoon in New York. But the Yen reversed the losses in the late deals and strengthened further during the early Asian session on Monday. The pair thus moved from 169.12 to 167.14 by about 9:30 pm Eastern Time. Lately, the pair has been trading sideways and collected 167.35 as of 1:40 am ET.

During the late afternoon deals on Sunday in New York, the Japanese Yen moved sideways versus the British Pound. At about 3:50 pm Eastern Time, the Yen fell briefly but it spiked higher within a few minutes. The uptrend helped the Yen to fetch the high of 248.53 by about 9:30 pm ET. Thereafter, the Yen lost a few pips and followed a sideways movement. As of 1:40 am ET, the pair was worth 248.98.

The Japanese Yen gained ground against its Swiss counterpart on late Sunday in New York. The Yen added to its gains in the early Asian deals on Monday and hit as high as 100.74 at 9:30 pm Eastern Time. The pair then moved sideways and fetched 100.86 as of 1:40 am ET.

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