Pound Mixed Against Major Currencies, Wednesday, June 06, 2007 2:43:30 PM

The pound was mixed against its major counterparts on Wednesday in New York. The sterling gained slightly versus the euro after the European central bank interest rate increase. Meanwhile, the British currency slid against the dollar and yen. Traders considered data showing that British consumer confidence rose for the fifth consecutive month to its highest level in eighteen months. Investors also awaited the release of interest rates from the Bank of England on Thursday.

The pound fell versus the dollar Wednesday in New York. The British currency lost ground in the early morning hours before settling into largely choppy trading with its American counterpart. At 2:10 pm ET, the sterling fetched a mark of 1.9927. This is compared to an intraday low of 1.9908 at 5:50 am and an intraday high of 1.9957 just before 1 am. Greenback traders considered data showing that first quarter productivity growth slowed more than had been previously reported.

The sterling was slightly higher versus the euro on Wednesday in New York. The pound lost ground in the early morning, but sharply gained at 6 am ET after the European central bank`s interest rate increase. Just before 10 am, the sterling began to level off. At 2:15 pm, the British currency traded at a mark of 0.6773. This is compared to an intraday low of 0.6787 at 5:50 am and an intraday high of 0.6770 at 11:50 am. Traders also considered data showing that German factory orders were down 1.2% in April from the previous month.

The pound slid against the yen in New York on Wednesday. The British currency declined through most of the morning before rebounding slightly just before 8 am ET. The sterling resumed its slide at 10 am, lasting into the early afternoon. At 2:20 pm, the cable fetched a mark of 240.98, its lowest point versus its Japanese counterpart since Friday. This is compared to a level of 242.26 at 2:30 am. Traders mulled data showing that the Japanese leading index was expectedly sluggish in April, while the coincident index climbed.

In the United Kingdom, consumer confidence rose for the fifth straight month in May, taking the reading to its highest level in 18 months, a monthly survey of Nationwide Building Society showed Wednesday. The consumer confidence index rose 9 points to 99 in May from 90 last month, the highest level since November 2005. Consumer confidence was largely influenced by an interest rate hike and Tony Blair`s announcement of his departure date as Prime Minister.

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