Euro Mixed Early Tuesday In New York; Hits Month-low Versus Franc

Euro Mixed Early Tuesday In New York; Hits Month-low Versus Franc

Tuesday, February 06, 2007 8:28:39 AM - The European currency showed varied trading early New York Tuesday. The common currency rallied against the greenback and showed good strength against the Canadian dollar too. It was initially higher against the Japanese currency but later gave back. To the sterling and franc, however, euro was lower during this session. Losses towards CHF made EURCHF hit a near-month low lately.

Recent deals in the pair came amid Euro-zone retail sales and German factory orders data for December. German factory orders lowered 0.2% on monthly basis in December seasonally adjusted numbers showed. Consensus was a growth of 0.5%. On year, factory orders gained 1.7%, smaller than 6.1% recorded in November much lower than the market expectation of 7.4%. Euro zone retail sales volume increased 2.1% annually in the month of December when the economists were expecting for a growth of 2.3%.

Against the US dollar, euro rallied early Tuesday in New York. From 1.2918 pair strengthened to 1.2958 within the time span between 1:45 and 7:00 am ET. Euro’s rally came ahead of the Euro-zone December retail sales data which came out at 5:00 am with weaker-than-expected numbers. Amid this data, euro shed a few pips but soon after, following the German factor orders data, regained the momentum. Of late, pair is moving sideways as the market is approaching information from the US.

When no key economic data is expected from the US economy for the day, Paulson’s testimony on Budget before the House and the Senate would be major attractions for the traders. Speeches by Fed’s Moskow and Yellen scheduled for the day also will be focused by the traders, it is widely expected. As of 8:25 am ET, EURUSD collected 1.2950. This is in level with the early Monday highs of euro.

To the British currency, euro showed weakness early Tuesday. Pair came down from 0.6594 of 1:00 am to 0.6582 within a couple hours, edged higher after a sideways trend of one hour and then, weakened heavily. At 6:35 am, pair collected 0.6573 and since then, it was sideways. BRC retail sales data for January, Euro-zone retail sales and German factory orders for December are the data likely affected the trading in the pair today.

After holding steady initially, EURJPY rallied early trading New York Tuesday. Growing from 155.37 from 1:50 am ET pair collected 155.97 shortly before the Euro-zone retail sales data. Following a weaker-than-expected data, yen gained upper hand over the common currency after 5:00 am. Pair continued lower amid the German data released after an hour. By about 8:25 am ET, pair declined to 155.60.

To the Swiss currency, euro trended slightly higher during the small morning, Tuesday, pair edged lower at 2:20 am but rebounded soon after. From a session’s high of 1.6142, euro weakened to the Swiss currency and pair hit as low as 1.6108 by 8:25 am ET. European currency was lower amid the euro-zone and German data released recently. This is a 25-day low for the pair.

Euro made visible advances to the Canadian currency early trading Tuesday in New York. At about 3:00 am pair staged a brief fall that gave back the gains posted so far but European currency regained its momentum soon after and rallied. For about a couple of hours until 6:30 am, pair was uncertain but made advances after that further. Of late, as the market is nearing Canadian building permits data for December, EURCAD is moving sideways and was worth 1.5309 at 8:25 am ET.