Pound Moved Up Against Dollar, Without Direction Versus Rest Of Majors Early Tuesday In New York, Tuesday, May 22, 2007 5:08:56 AM

The British pound showed strength against the US dollar but saw directionless trading versus the rest of majors during early deals on Tuesday in New York. The cable traded mixed in recent hours as no fundamentals have been slated for release from the UK on Tuesday. Investors now turn toward the minutes of recent monetary policy board meeting, which will be released by the Bank of England on Wednesday.

The market is now looking forward to the ZEW German economic sentiment for the month of May, which is expected at 5:00 am ET on Tuesday.

However, in the wake of recent interest rate moves by the Peoples` Bank of China, meeting of the US treasury secretary Paulson with the Chinese officials, which is happening later this morning in Washington, will be viewed more cautiously by traders.

The British currency strengthened against the US dollar in the early hours on Tuesday in New York. Rising from 1.9704, the pair fetched as high as 1.9734 by about 2:55 am before changing its direction. The cable dropped only a few pips, and the pair has been moving sideways, lately. As of 4:50 am ET, the pair was quoted at 1.9733. The pair has been trading near 7-week lows, lately.

The pound saw directionless trading versus the euro during the very early deals on Tuesday in New York. The pair had its session`s high around 0.6835 at about 2:40 am, but later it weakened to 0.6823. Of late, the pair is moving sideways. The pair is now slightly off a 2-month high hit on 15th May, and a likely near term level of support will be around 0.678.

Amid Japanese releases around 1:00 am ET on Tuesday, the British currency gained marginally against the yen, but has weakened, afterwards. Falling from 239.6, the pair hit as low as 239.10 by about 3:30 am ET. However, thereafter, the sterling reversed its losses, and the pair was quoted at 239.68 at 4:50 am ET. The pair has been testing resistance levels slightly below 240 from around the beginning of the month, and if it moved upwards, the next likely level of resistance will be around 241.5, which was lastly collected on 23rd of January.

The British currency moved in a loose range against the Swiss franc early Tuesday in New York. The pair hit its session`s low near 2.4244 by about 2:40 am, but moved up to 2.4282 by around 3:15 am. Later, the pair slipped, but has been moving sideways, of late. At 4:50 am ET, the pound equaled 2.4271 francs, and the pair is now approaching a near term resistance around 2.43, lately.

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