Euro Sees Mixed Trading During Early European Session, Thursday, June 07, 2007 4:52:01 AM

The European currency saw mixed performance during initial hours of the European session on Thursday. While the common currency moved up against the yen and the franc, it lost ground against the U.S. currency. Meanwhile, against the sterling, the euro moved sideways.

Deals in the single currency took place amid a lack of data from key Euro area economies in the session. Investors are now waiting for the monetary policy decision by the Bank of England, which is scheduled for 7:00 am ET.

Wednesday, Jean-Claude Trichet, the president of the European Central Bank said in his usual post-decision press conference that the monetary policy in the euro-zone is still accommodative. His comments followed the ECB`s decision to raise the benchmark interest rate to 4% from 3.75% for the month.

Despite the hawkish words of Mr. Trichet, the common currency weakened against the counterparts in mid-morning deals on Wednesday in New York. During the late hours, the euro saw directionless trading across the board.

Later, in the Tokyo session on Thursday, the European currency traded higher versus the major currencies, but has shown mixed trading lately.

In the Tokyo session on Thursday, the euro moved upwards against the Japanese yen. The uptrend lifted the pair to 1.3511 from 1.3494 by about 2:00 am ET, but thereafter, the euro lost ground. Lately, the euro has collected 1.3498 dollars. Largely, from yesterday mid-morning, the pair has been testing a near term level of support and if it weakens further, next likely support can be around 1.348.

The euro moved sideways against the British pound during late New York trading on Wednesday and in the Tokyo session on Thursday. Lately, the pair has been limiting between 0.6772 and 0.6777. Investors now turn toward the policy decision by the Bank of England.

The euro weakened against the Japanese yen during late New York trading on Wednesday, but the pair rallied in the Asian session on Thursday. The pair strengthened to 163.96 from 163.04 during the Tokyo deals, but it has dropped a few pips lately. As of 4:45am ET, the pair was quoted at163.74.

The euro rallied against the Swiss franc during Asian session on Thursday. Later, amid the Swiss news about its employment level in the month of May, the common currency strengthened further against the franc. By virtue of the recent deals, the pair has reversed much of its yesterday`s losses.

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