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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