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.

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