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IMM currencies end mixed after U.S. stocks recover

CHICAGO: IMM currency futures ended mixed, as a recovery in U.S. stocks pressured contracts off session highs near the end of pit trade.

The March euro gave back much of the session's gains, and the yen sank into negative territory shortly before the close.

"It's just the way the stocks came back," said Mike Malpede, senior foreign exchange analyst at Refco Group.

Earlier, concern over inflation led to weakness in U.S. equities. Declines in stocks boosted March euros and kept March yen from slipping, traders said.

"The dollar really got hit. (It was) weaker on that," said one IMM currency futures trader.

The March euro opened weaker and seesawed early. The contract then forged ahead and turned positive. Nearby euros set a session high at $0.98790, piercing resistance at $0.98100 and $0.98320.

Euro strength boosted nearby Swiss francs, traders said. The contract pierced resistance at $0.6129 and set a session high at $0.6160 before trimming gains.

Concern over possible central bank intervention to shore up the weak euro also lent the currency some support, traders said.

March yen set a session high in morning activity at $0.009259 and then slipped into a range near unchanged. Later in the session the contract fell, breaching intraday support at $0.009224 and $0.009214, with intraday support at $0.009200 holding firm.

Traders expect Federal Reserve Chairman Alan Greenspan's semi-annual Humphrey-Hawkins testimony Thursday to lend some direction to U.S. stocks, which would likely influence price action in IMM currencies, traders said.

Traders also await Germany's Ifo business sentiment index Thursday.

At settlement, March yen was $0.000029 lower at $0.009204, euros off $0.00010 at $0.98310, Swiss francs up $0.0005 at $0.6125, sterling up $0.0074 at $1.5952, Canadian dollars up $0.0003 at $0.6869, Australian dollars up $0.0017 at $0.6291 and Mexican pesos up $0.000450 at $0.105875.-Reuters