Thursday, May 3, 2007

Loonie Lower Versus Majors Towards End Of European Session Thursday, Thursday, May 03, 2007 6:51:38 AM

The Canadian dollar saw uncertainty across the board during the very early deals on Thursday in New York. But towards the end of the European session, the loonie stood lower against all major counterparts. This came amid economic releases like Swiss inflation, British PMI and Euro-zone PPI.

U.K Purchasing Mangers` Index for service industry dropped to 57.2 in April from 57.6 in March. This is the lowest reading since last September.

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.

As there is no Canadian data due, the preliminary details of the US non-farm productivity and unit labor costs for the first quarter and the ISM non-manufacturing data for the month of April are expected to drive the deals in the North American session of Thursday.

The Canadian currency trended lower against the dollar into the early deals on Thursday. The pair lost ground at 1:35 am ET and it weakened from 1.1090 to 1.1062 by about 3:55 am ET. The loonie gave back the gains shortly thereafter, but has picked up some points again, lately. As of 6:40 am ET, the buck was equal to 1.5073 loonie.

Losing ground at midnight the loonie moved from 1.5059 to 1.5091 by about 2:40 am ET on Thursday. The loonie then traded higher but after hitting its session`s high at 4:00 am, changed its direction. Climbing from 1.5053 the pair fetched 1.5098 at 5:15 am ET. Of late, the pair dropped some pips, and was worth 1.5073 as of 6:40 am ET.

Entering the early deals on Thursday, the Canadian dollar saw uncertainty against the pound. At about 4:05 am ET, the pair gained ground and strengthened from 2.2039 to 2.2113 by about 5:15 am. The pair then shed a few pips, and was quoted at 2.2066 as of 6:40 am.

The loonie showed uncertain trading against the Japanese yen during the very early hours on Thursday in New York. At about 4:15 am ET, the pair started weakening from its session`s high of 108.64. As of 6:40 am ET, the Canadian dollar fetched 108.42 yen.
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