Tuesday, May 8, 2007

Pound Weak Against Dollar And Yen, Moved Upwards Versus Euro And Franc Early Tuesday, Tuesday, May 08, 2007 5:53:38 AM

While the British currency strengthened against the Swiss franc and the euro, it weakened heavily versus the dollar and the yen, early Tuesday in New York.

The early deals came amid a lack of data from major economies. German industrial production data for the month of March is expected at 6:00 am ET on Tuesday, which is the next fundamental expected from a major economy. The seasonally adjusted industrial output is not expected to grow from the previous month`s level. The output had risen 0.9% in February.

Later in the morning, the US wholesale sales data for March will be released, which is likely to gain attraction in the North American session of the day. The British nationwide house price data for April is slated for release at 7:01 pm ET.

For about an hour until 1:20 am ET on Tuesday, the pound moved sideways against the dollar. The pair then weakened, and coming off 1.9964 the pound collected 1.9918 dollars at 4:40 am ET. Thereafter, the pair changed its direction and about an hour after, it fetched 1.9938. After hitting 2.0135 on 18th April, the sterling has largely been trending lower against its US counterpart.

Against the European currency, the cable moved slightly downwards into the early hours on Tuesday. However, after hitting its session`s high at 2:30 am ET, the pair weakened. Moving from 0.6831 the pair traded at 0.6810 at 5:45 am ET. Largely speaking, the pair is on an uptrend which was started on 17th April. A continued upward movement is likely to cause a re-testing of the multi-month high near 0.686, which was lately hit on 14th March.

The British currency moved sideways into the early hours on Tuesday in New York. From 239.34, the pair edged lower at 2:30 am ET but continued sideways until falling heavily at 4:00 am ET. The pair hit as low as 238.60 at 4:40 am ET, and after that, the cable picked up a few pips. After about an hour, the sterling equaled 239.03 yen. Broadly speaking, after reversing the losses in third week of April through the next week, the pair moved sideways between 238.45 and 239.87.

The pound moved slightly lower against the franc into the early hours on Tuesday in New York. At 2:30 am ET, the pair changed its direction and rallying from 2.4148 the pair collected 2.4229 as of 5:45 am ET. The pair has been bouncing around between 2.4005 and 2.4292 from 17th April. This tested a high since last week of February. A break above 2.4292 by the pair is likely to lead it towards a long-term resistance level in line with highs hit on February second week.
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