Pound Falls Against Franc Amid Inflation Release, Higher Against Rest Of Majors; Early Thursday In New York, Thursday, May 03, 2007 5:17:14 AM

The British currency weakened against the Swiss franc, but gained against the rest of majors early Thursday in New York. The fall against the franc came amid the release of Swiss inflation data.

In April, the Swiss consumer price inflation gained 1.1% month-over-month and it rose 0.5% annually, according to the official data came out at 1:45 am ET. Both the figures stood higher than analysts` expectations.

Euro-zone March producer prices grew 2.7% on year when the analyst estimation stood at 2.8%. On the year, PPI inflation rose 0.3% on month, matching the consensus. The data was released at 5:00 am ET.

The British currency moved sideways against the US dollar into the early deals on Thursday in New York. The pair but dipped briefly at 1:40 am ET and fetched a session`s low at 1.9892 before bouncing back sharply. The upward trend held by the pair lifted it to as high as 1.9937 by about 4:30 am ET. The UK services PMI data released at this time caused the pair shed a few pips. AT 4:45 am ET, the pair equaled 1.9915.

After holding steady through the later deals on Wednesday in New York, the euro gained ground against the sterling at about 11:25 pm. this moved the pair from 0.6829-35 to 0.6834-0.6838 into the overnight deals. Of late, the euro dropped off versus the cable, and the pair was equal to 0.6827 at 4:30 am ET. The data release at this time helped the pair to gain slightly, but it entered a sideways trend shortly.

The yen saw uncertainty against the pound during the late hours on Wednesday in New York. The pair had its session`s high of 239.37 at 9:05 pm and the low at 239.05 as of 10:10 pm ET. The pair continued sideways into the early hours on Thursday until gaining ground at 3:00 am ET. Climbing from 239.11 the pair fetched as high as 239.60 at 4:30 am ET. Then the pair was weakened to 239.27, likely being influenced by the British PMI data.

The pound closed its Wednesday`s deals at 2.4155 against the Swiss franc in New York. After that, the pair moved sideways ahead of the Swiss inflation data. Amid the release at 1:45 am, the pair fell sharply as the figures came in higher than expected. From 2.4096, the pair started correcting the losses and was quoted at 2.4139 as of 5:00 am ET.

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Yen Hits 2-month Low Versus Dollar, Wednesday, May 02, 2007 7:19:10 AM

The yen hit a 2-month low against the dollar and stayed near a 3-month low against the sterling Wednesday morning in New York. Traders considered data showing that Japanese steel exports declined on year while imports rose.

The yen dropped to a 2-month low of 120.18 against the dollar Wednesday morning in New York. Wednesday will see the release of important factory orders data from the US.

The yen raced lower to the euro Wednesday morning in New York, falling to 163.16 after hitting 162.55 in early dealing. German PMI for manufacturing industry improved slightly to 57.0 in April. Economists were looking for a reading of 57.3.

Choppy trading against the sterling Wednesday morning in New York left the yen slightly improved from Tuesday`s 3-month low of 239.76. The yen traded at 239.15 approaching mid-morning as traders assessed data from the UK showing total net lending to individuals rose GBP10.8 billion in March.

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Loonie Higher To Cable And Yen, Choppy Versus Other Majors; Early Wednesday, Wednesday, May 02, 2007 6:21:21 AM

The Canadian dollar ticked higher versus the Cable and the Yen during early Wednesday trading in New York. On the other hand, the Loonie largely showed choppy trading against the dollar and the Euro. Various European economic data which were released during the session is likely to have affected the trading in the Loonie versus the Euro.

Late Tuesday in New York, the Greenback drifted higher versus the Canadian dollar. However, at about 12:05 am ET Wednesday, moving off 1.1137 the pair gave back some of its losses and touched a low of 1.1107 after about a couple of hours. Soon after, the Greenback gained some momentum and entered a loose range. As of 6:20 am Eastern Time, a Greenback was worth 1.1126 against the Loonie.

Ahead of the release of the German March ILO unemployment rate data, the Euro showed choppy trading against its Canadian counterpart in the very early deals on Wednesday. However, following the release, the pair ticked down and touched an early morning low of 1.5084 by about 3:45 am ET. The pair made some advances thereafter and showed a choppy trading again. As of 6:20 am Eastern Time, a Euro fetched 1.5103 Loonie.

Drifting lower in the overnight deals on Wednesday, the British currency traded at 2.2146 versus the Loonie at about 4:00 am ET. The Cable then advanced slightly but the pair followed a sideways movement after about an hour. As of 6:20 am Eastern Time, a Cable traded at 2.2168 Loonie.

Against the Yen, the Canadian dollar showed weakness during the small morning hours on Wednesday. Off 107.51 by about 1:55 am ET, the pair bounced back completely and steadied further higher. As of 6:20 am Eastern Time, a Loonie was quoted at 107.95 Yen.

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Dollar Grows To Multi-week Highs Versus Yen And Franc, Testing Near-term Resistance Versus Euro And Sterling, Wednesday, May 02, 2007 7:08:52 AM

Towards the end of the European session, the buck leveled its midnight quotes against the euro, but traded above the midnight quotes versus the rest of majors. The buck lately fetched 2-months high against the yen and three-weeks high versus the franc. The session witnessed a slew of economic reports from the euro area, the British and the Swiss economies.

The US dollar weakened against its major counterparts as the deals entered the very early hours on Wednesday in New York. This made the greenback fetch its session`s lows by about 2:00 am ET, but it bounced back across the board shortly.

The North American session of Wednesday is a less loaded one. ADP and Challenger employment data for April or the factory orders for the month of March are not likely to move the markets on a remarkable scale. Speeches by two officials from the Federal Reserve may attract the attention of the market.

The early Wednesday advances of the euro made it grow from 1.3566 to 1.3600 dollars by about 2:05 am ET. The pair then dropped off but by about 3:30 am, started seeing choppy trading. As of 7:00 am ET, the pair equaled 1.3567. This leveled the midnight quote of the pair.

The US dollar weakened against the British currency in the early deals on Wednesday in New York. The pair thus strengthened from 1.9945 to 1.9972 by about 2:10 am ET. The pair then weakened, but after collecting as low as 1.9911 at 3:35 am ET, its direction was changed. However, most of these gains were given back by the pair with a downtrend started at 4:50 am. As of 7:00 am Eastern Time, the sterling was worth 1.9899 dollars. The dollar is now testing near-term resistance against the sterling.

The early Wednesday`s fall of the US dollar against the Japanese yen made the pair weaken from 120.07 to 119.47 by about 2:00 am ET. The dollar rebounded quickly afterwards, and leveled the midnight quote within about three hours. The buck added to its gains through the next hour, and as of 7:00 am ET, the pair was quoted at 120.21. This is a two-month high for the pair.

The US currency staged a sharp fall against the Swiss Franc as the pair entered the early morning deals on Wednesday in New York. The pair thus fell from 1.2175 to 1.2133 by about 2:05 am ET, but it bounced back, shortly after. Of late, the pair collected quotes slightly above its midnight level. At 7:00 am ET, the dollar was quoted at 1.2191 francs. This is a three-week high for the dollar.

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Aussie Bounces Back Some Of Its Late Tuesday Losses Into The Early Deals On Wednesday, Wednesday, May 02, 2007 5:42:37 AM

The Reserve Bank of Australia left its official interest rates unchanged at 6.25%. Following this release at 7:30 pm ET Tuesday, the Aussie gained a few pips across the board, but it made a steep fall soon after. The Aussie continued its downtrend in the late hours. However, in the early deals on Wednesday, the Aussie bounced back some of its losses against its major counterparts. Various European economic data which were released during the session is likely to have affected the trading in the Aussie versus the Euro.

In the evening hours on Tuesday, the Australian currency trended lower against its U.S. counterpart. At about 7:30 pm ET, following the release of the Reserve Bank of Australia`s rate decision, the Aussie strengthened slightly but it lost ground again within a few minutes. The Aussie touched a low of 0.8220 by about 12:20 am ET Wednesday and then rebounded some of its losses. As of 5:41 am Eastern Time, an Aussie fetched 0.8250 against the Greenback.

Against the Aussie, the European currency made advances on Tuesday evening in New York and this came ahead of the release of the Reserve Bank of Australia`s rate decision. However, amid the release, the euro slid briefly but it ticked higher again at about 7:50 pm ET. The uptrend helped the euro to collect as much as 1.6499 by about 11:15 pm ET. The pair showed choppy trading thereafter and extended the same trend until about 2:50 am ET Wednesday. The euro then made a steep fall and traded at 1.6453 Aussie as of 5:41 am Eastern Time.

During the evening deals on Tuesday, ahead of the release of the Reserve Bank of Australia`s rate decision rate decision, the Pound rallied versus the Aussie. Following the release, the pair shed a few pips and then followed a sideways movement. The Pound started drifting higher again at about 8:50 pm ET and fetched a high of 2.4252 by about 12:20 am ET Wednesday. Soon after, the Pound gave back most of its gains and it was quoted at 2.4155 Aussie as of 5:41 am Eastern Time.

The Australian dollar showed choppy trading against the Loonie until about 7:30 pm ET Tuesday and this was ahead of the release of the Reserve Bank of Australia`s rate decision. Amid the release, the Aussie made a few advances but the pair dropped off heavily at about 7:50 pm ET. Around midnight, the Aussie entered a tight range and resumed the same trend in the very early deals on Wednesday. At about 2:25 am ET, the pair made a sharp spike higher and has been moving further higher of late. As of 5:41 am Eastern Time, an Aussie collected 0.9179 Loonie.

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Dollar Rises On ISM Report, Tuesday, May 01, 2007 3:57:17 PM

Strong ISM data pushed the dollar against its major counterparts during Tuesday`s trading. The greenback weakened in early trading, but bounced back with the 10 a.m. release of ISM data. In general, the dollar was close to its overnight levels against the euro and pound, but tested a two-month high against the yen.

The greenback surged in the late morning on strong ISM data and was up for the day against the euro. The dollar touched a daily low of 1.3661 around 3 am Eastern Time and a daily high of 1.3624 a half-hour later. The dollar then trended down for about six hours to reach a daily low of 1.3670 at 9:30 a.m. But the 10 a.m. release of stronger-than-expected ISM data pushed the dollar up sharply. The dollar got as high as 1.3590 at around 11:45 a.m. ET before cooling off. The French, German, Italian and Swiss markets were closed.

Meanwhile, the dollar rebounded back to its overnight levels against the sterling in the late morning after hitting a two-week low earlier in the day. The greenback slipped back below the $2 level during the early morning, amid the release of data showing UK PMI for the manufacturing industry dropped slightly more than expected in April. At 9 am Eastern Time, the greenback traded at a daily low of 2.0074. But the release of stronger-than-anticipated ISM data pushed the dollar back up on the pound. The buck was up to 1.9986 at 3:45 p.m.

The greenback tested a two-month high against the yen on Tuesday after a late morning rally. Early trading took place following the release of data showing that Japanese domestic auto sales declined 10.2% in April from the previous year. The pair was level until about 9 a.m. when the dollar plunged to as low as 119.07. However, stronger-than-expected ISM data brought the dollar up. The greenback got as high as 119.85 at 11:45 a.m. ET, just off the two-month high of 119.86, set two weeks ago. The currencies remained near that level into the afternoon.

Tuesday morning, the Institute for Supply Management released its report on business activity in the manufacturing sector in the month of April, showing that the pace of growth in the sector grew much faster than expected. The ISM said that its index of activity in the sector rose to 54.7 in April from 50.9 in March, with a reading above 50 indicating growth in the sector. Economists had expected a much more modest increase to about 51.0.

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Bonds Generally Finish Lower On Tuesday, Tuesday, May 01, 2007 3:31:23 PM

The mid-morning release of economic news caused a sell-off in the treasury market on Tuesday, sending bonds lower and treasury yields higher. Bonds declined with the release of stronger-than-expected data on the manufacturing sector but began to move back toward the unchanged line as Wall Street began exhibiting strength in the afternoon.

The 10-year yield began Tuesday`s session lower, continuing the downward trend that was seen throughout Monday`s trading. However, the data on manufacturing in April sent yields up nearly 5 basis points. As the day progressed, the 10-year yield slipped off its high for the session, but still closed up 1.2 basis points at 4.642%.

At the same time, the 5-year yield closed 2.3 basis points higher at 4.539%. Meanwhile, the 30-year yield slipped back below the flat line near the end of the day, closing at 4.816%, down less than a basis point on the day.

At 10 am Eastern Time, the ISM said that its index of activity in the manufacturing sector rose to 54.7 in April from 50.9 in March, with a reading above 50 indicating growth in the sector. Economists had expected a much more modest increase to about 51.0.

Meanwhile, the National Association of Realtors reported its index for pending sales of existing homes decreased at a seasonally adjusted annual rate of 4.9% to 104.3 in March from 109.7 in February.

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