Euro Mixed Ahead Of Wednesday`s North American Session, Wednesday, July 04, 2007 5:32:28 AM

The euro moved upward across the board during the early European session on Wednesday, but it has dropped against greenback and the sterling lately. The euro gained its momentum after seeing varied performance in the previous session.

The Asian deals took place amid a lack of data from Japan and through this period, the common currency declined against the yen and the sterling. On the other hand, the single currency was uncertain about direction versus the dollar and the franc in this session.

Amid services PMI data from major euro-zone and British economies, the euro dropped a few pips against the greenback and the pound, but it held the gains versus the rest of majors.

Investors did not show visible reaction towards an unexpectedly weakened Euro-zone retail sales data released at 5:00 am ET. The retail sales in May declined 0.5% from the previous month, while analysts had been expecting no change from the April month value.

The US markets, however, remain closed on Wednesday owing to Independence Day celebrations.

The euro strengthened against the dollar during early European session on Wednesday, and the pair collected as high as 1.3629 at about 2:30 am ET. This may be compared with the previous day`s New York session close of 1.3609. Of late, the euro has shed a few pips versus the greenback and it is now trading around 1.3611 dollars. Downside, 1.3600 can be a level of support for the pair in the near term.

Against the pound, the euro trended slightly downward during the Asian deals on Wednesday, but the losses have been reversed lately. Tokyo session downtrend moved the pair to 0.6741 versus the previous day`s close of 0.6746, and the reversal that followed has helped it touch as high as 0.6748. Lately, the euro has been holding steady around 0.6746.

The euro weakened against the Japanese yen during the early Tokyo deals on Wednesday but the losses were reversed towards the end of the session. The single currency moved to 166.33 by about 10:45 pm ET, compared to the previous day`s close of 166.56. However, the rally that followed has helped it to hit 166.80, lately.

The euro saw directionless trading against its Swiss counterpart during the Asian session on Wednesday, but the pair rallied in the early European deals. Rising from 1.6537, the euro collected 1.6565 francs at about 3:20 am ET, and thereafter, it held steady. If moved further higher, 1.657 will be a likely level of resistance for the euro in the near term.

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