20000128

IMM currencies end mixed, euro bounces off lows

CHICAGO: IMM currency futures ended an extremely quiet session mixed, with the March euro ranging lower and lacking the momentum for an upside or downside breakout.

March euros set a fresh session low in the afternoon at $1.00300, which is the contract low set Tuesday. The contract slipped below support at $1.00500 and $1.00370.

The euro/dollar stalled near parity and slipped slightly below the psychologically important level. One IMM currency trader said the currency lacked momentum to head much lower because some market participants are reluctant to sell euros in anticipation of a short-covering bounce.

"Every time it's gotten down here and (traders) sold it, it's popped back up," the trader said.

A lack of interest also kept both nearby euro and yen in ranges for much of the session.

"Momentum is totally lost. We're spinning our wheels sideways," the trader said.

The Senate Banking Committee held a confirmation hearing on Federal Reserve Chairman Alan Greenspan's renomination to his current position. Another IMM currency futures trader said the market was kept quiet by anticipation that the hearing could spark a move in US equity markets that might affect IMM currencies.

However, by the close of the session Greenspan had said very little to move IMM currencies.

One potential catalyst to ignite euro price movement could be the US stock market, said Kathy Jones, director of futures research at Prudential Securities.

"If the US stock market were to surge higher again, then the dollar would probably push through parity fairly quickly," she said.

Stocks traded mixed Tuesday, lacking the strength to give the euro serious direction.

March yen also traded near steady. The contract slipped below intraday support at $0.009500 to set a pit low of $0.009498 but trimmed losses.

"We're stuck," said the first IMM trader.

Without much inspiration from the Group of Seven of industrialised nations' meeting over the weekend, the yen was left directionless, the trader said.

At settlement, March yen was up $0.000013 at $0.009530, euros off $0.00050 at $1.00480, Swiss francs off $0.0003 at $0.6243, sterling off $0.0062 at $1.6382, Canadian dollars down $0.0005 at $0.6962, Australian dollars off $0.0034 at $0.6519 and Mexican pesos up $0.000375 at $0.103475.-Reuters