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IMM currencies end mostly lower, range-bound

CHICAGO: IMM currency futures ended a lackluster session mostly weaker, as traders lacked new key fundamental data for inspiration and focused instead on the direction of US equities.

March euros opened near steady and then fell, breaching support at $0.98750, the overnight low, and $0.98650 and $0.98460. To attract buying interest, March euros needed to fall toward support at $0.97800, one IMM currency futures trader said. But nearby euros did not sink below the session low of $0.97960 set in morning dealings.

The trader said the contract made its day's low on extremely light volume, then spent most of the afternoon range-bound.

US stocks seesawed in and out of positive territory for much of pit trade. However, the Dow Jones Industrial Average remained higher for most of the session.

"As long as the Dow Jones stays fairly bid, there will be pressure on the euro," said Andy Busch, foreign exchange director at the Bank of Montreal.

Strength in US stocks often boosts the dollar and in turn can weaken IMM currencies.

March yen slowly ebbed to a fresh pit session low at $0.009226 before falling into a range as well. The contract breached intraday support at $0.009230, but intraday support at $0.009214, near the $0.009213 overnight low, held firmly.

Sell stops triggered in the spot market in the Canadian dollar weighed on the currency, Busch said. The Canadian currency moved in sympathy with the Australian dollar, which was also weaker.

Traders await Federal Reserve Chairman Alan Greenspan's testimony on Capitol Hill on Thursday for further direction.

US December business inventories rose 0.5 percent, versus a 0.4 percent rise forecast, but the market largely ignored the data.

At settlement, March yen was $0.000005 higher at $0.009233, euros off $0.00580 at $0.98320, Swiss francs off $0.0047 at $0.6120, sterling off $0.0060 at $1.5878, Canadian dollars off $0.0031 at $0.6866, Australian dollars off $0.0051 at $0.6274 and Mexican pesos up $0.000150 at $0.105425. -Reuters