Tuesday, June 5, 2007

Euro Stronger Versus Dollar And Pound, Weaker Versus Yen, Tuesday, June 05, 2007 1:54:21 PM

The euro experienced mixed results versus its major counterparts on Tuesday in New York. Traders considered data unveiled on Tuesday that showed Euro one retail sales grew at a lower-than-expected rate in April. Investors also looked ahead to a rate announcement from the European central bank on Wednesday. There is an expectation of an interest rate hike at the commencement of the meeting.

The euro ticked higher versus the dollar Tuesday in New York. The euro rose during the early morning, hitting an intraday high of 1.3554 at 8:20 am ET. This was the European currency`s highest level versus the dollar in three weeks. The euro gave back some of its early gains soon after Fed Chairman Bernanke`s remarks reiterating that inflation was a significant risk to the U.S. economy. At 1:30 pm ET, the euro fetched a mark of 1.3523. Traders also considered data showing that the American non-manufacturing ISM was higher-than-expected in May.

The euro gained slight ground against the sterling Tuesday in New York. The European currency gained steadily through much of the morning before beginning to level off after 8:30 am ET. At 1:35 pm, the euro fetched a mark of 0.6784, off an intraday high of 0.6788 at 8:20 am. This is compared to an intraday low of 0.6771 just before 4 am. Sterling traders considered reports showing that UK PMI was stronger-than-expected in May and that May retail sales grew at their lowest rate in six months. Investors also looked ahead to the release of the British consumer confidence survey.

Versus the yen, the euro fell Tuesday in New York. After a morning dominated by largely uncertain trading, the European currency slid around 8:30 am ET. After a brief rally couple hour rally that began at 10 am, the euro began to decline again. At 1:45 pm ET, the euro traded at a mark of 164.04. That is compared to an intraday high of 164.59 at 3:30 am. Traders mulled data showing that Japanese firms` capital spending reached a record high following a higher-than-expected first quarter.
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