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IMM currencies end mixed, euro closes firmer

CHICAGO: IMM currency futures ended mixed Tuesday, with yen futures higher but off peaks and euro futures pushing into positive territory as U.S. stocks slipped.

June euros shook off early weakness, steadily moving higher in afternoon trade. The contract set a $0.97440 session high, piercing resistance at $0.97150.

The contract will likely move up toward $0.98430 in the next week or two, said Tom Pawlicki, financial futures technical analyst at Refco Inc.

The nearby euro made a bullish reversal pattern on February 28, and over the last two weeks it also made a rounded bottom, he said.

"Those two indications suggest we can get a little strength," Pawlicki said.

As the June euro made its session high, stocks were setting new daily lows, which was a partial explanation to why the contract closed firmer, said Lara Rhame, foreign exchange economist at Brown Brothers Harriman.

"One is the equity story," she said. "The other is the cross against the yen, which I think is controlling the euro quite a bit more than it has been in the past."

June yen ended off its highs but within the session's range. The contract pierced resistance at $0.009652, the top of the range it made in January on a continuation chart, Pawlicki said.

"We've built up some momentum over the last two weeks. I think it indicates we're going to make a run at the range that was established in December," he said.

The contract will likely move up into the $0.009830 to $0.009990 range and hold there before moving lower again, he said.

Concern over Bank of Japan intervention to stem the yen's rise capped the currency's gains, Rhame said.

At settlement, June yen was $0.000047 higher at $0.009673, euros up $0.00250 at $0.97330, Swiss francs up $0.0013 at $0.6057, sterling off $0.0014 at $1.5772, Canadian dollars down $0.0016 at $0.6841, Australian dollars off $0.0001 at $0.6165 and Mexican pesos off $0.000150 at $0.104475. -Reuters