Thursday, June 7, 2007

Cable Mixed Ahead Of BoE Rate Decision, Thursday, June 07, 2007 6:36:01 AM

The British currency saw mixed performance during the early European session on Thursday. The pound strengthened against the yen and the franc, but it held a tight range against the euro. The sterling was higher against the dollar in the Tokyo session, but the pair has dropped the gains, lately.

As of now, the markets are waiting for the monetary policy announcement by the Bank of England. The BoE is widely expected to hold the key interest rate at 5.5% this time. However, some sources don`t deny a chance of a hike, considering the fact that there are members in the MPC who opted a half point hike in May.

The British currency strengthened against the U.S. dollar during the Tokyo session on Thursday. After hitting as high as 1.9941, the pair weakened and has been lately trading near 1.989. Largely, the pound has reversed almost half of its losses against the dollar after coming off the peak of 2.013 in mid-April. Downside, 1.97 can be a likely target for the pair.

Against the euro, the sterling moved sideways during the Asian and the European sessions on Thursday. Deals in the European session came amid a lack of data from both the economies, and the market is now looking forward to the BoE policy announcement. Broadly speaking, the pair has been moving in a wide range since early March bouncing between 0.675 and 0.677.

The sterling rallied against the Swiss franc through the Asian and European sessions on Thursday. The pair gained ground at about 9:30 pm ET, and moving from 2.423, it fetched 2.433 lately. The Swiss employment data which was released at 1:45 am ET is likely to have affected the deals in the pair.

The British currency strengthened against the Japanese yen during the Tokyo session on Thursday. Rising from 240.6, the pair collected as high as 242 before changing its direction towards the end of the session. Trending lower thereafter, the pair has lately equaled 241.2.
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