Buck Strong Early Friday; Mixed Into Mid-morning

Buck Strong Early Friday; Mixed Into Mid-morning []

Friday, March 09, 2007 6:17:00 AM - The US dollar showed strength during the very early deals of Friday but turned mixed, lately. Recent gains of greenback reversed the losses it suffered from the Asian time. Late Thursday in New York, USD was down against most other majors but was strong to its Japanese counterpart. This came despite a stronger-than-expected machine orders data for January which struck the market at 6:50 pm ET.

Early deals of Friday were marked by German, French and British releases so far. German current account and trade balance for January were released at 2:00 am ET and euro was down against the greenback amid this. The French number followed also was unable to trigger the common currency against its US counterpart but of late, EURUSD has made some advantages and entered an uncertainty ahead of the US session.

Shortly after, British January industrial production details were released and this helped sterling reverse some of its small morning losses to the US dollar. Meanwhile, to the Japanese currency, greenback checked its uptrend at about 4 am and has been moving in a tight range since then. USDCHF, however, weakened after French data and has dropped most of its small morning gains, as of now.

Investors are now keenly waiting for the US non-farm payrolls data for February slated for later this morning. This indicator is considered to be a major market mover and traders likely form their stand ahead of coming key releases, based on this and. The trade balance data for January is also expected early today.

The US dollar traded higher against the European currency early Friday in New York. This helped greenback reverse the losses it collected late trading Thursday. EURUSD was worth 1.3164 at 11:30 pm but gains of buck since then made the pair reach 1.3139 by 4:20 am before it changed the course of trend. Greenback was higher to the common currency amid the German and French data but recent losses are likely caused by the Italian numbers released at 5:00 am ET. As of 6:07 am ET EURUSD was worth 1.3155.

To the British currency, greenback was lower, late trading Thursday but entered a sideways trend by midnight. At 2:10 am ET from 1.9326, pair weakened as the US currency found momentum. However, at 4:30 am after a brief spike lower, sterling improved against the buck and this was likely supported by the British industrial and manufacturing production data for January released at 4:30 am ET. As of 6:07 am ET GBPUSD collected 1.9315.

To the Japanese currency, buck rallied late evening Thursday following the Japanese data at 6:50 pm ET. This happened despite a stronger-than-expected result of the machine orders for January. However, since about 8 pm, pair was uncertain but rallied again into the small Friday deals. By about 3:50 am pair checked its upward journey and entered a range-bound movement. As of 6:07 am ET, USD versus JPY traded at 117.45.

USDCHF was range-bound around midnight and this came following greenback’s losses versus franc during late Thursday deals. By about 1:00 am Friday, from 1.2259, buck surged against the alpine currency and fetched a session’s high of 1.2287 at 2:35 am ET. After that, pair dropped off again and was equal to 1.2262 by about 6:07 am ET. This reversed the recent gains of greenback almost completely.