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.

Copyright © 2007 RTTNews.com. All Rights Reserved.