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IMM currency futures mixed in early trade

CHICAGO: IMM currency futures ended mixed on Thursday, after US data in line with expectations brought a sigh of relief from US equity markets and kept currencies rangebound.

"As long as the stock market stays higher, it's hard to get any movement in the market. It's a one-trick pony right now," said Mike Malpede, senior foreign exchange analyst at Refco Inc.

US December producer price index rose 0.3 percent overall, and core PPI, which excludes volatile food and energy prices, rose 0.1 percent, both as forecast.

US December retail sales rose 1.2 percent, versus a forecast of up 1.0 percent. Sales excluding cars were up 1.4 percent, versus a forecast 0.7 percent rise.

"People are waiting for him to speak this evening, to see if he is setting up for another 'irrational exuberance' speech," said one IMM currency futures trader in reference to a previous Greenspan speech where he warned of excesses in the stock market.

The Bank of England Thursday raised interest rates 25 basis points, a widely anticipated move that initially pressured March sterling.

"You had buy the rumour, sell the fact," Malpede said.

The contract recovered, seesawing on both sides of steady.

March euro was weaker throughout the pit session. The contract fell in a knee-jerk reaction to US data and set a fresh session low at $1.02800 early. Support there held the remainder of the session.

European Central Bank Chief Economist Otmar Issing's warning that upcoming M3 money supply data for December and January may show major swings as a result of statistical effects had little impact on currencies, Malpede said.

March yen also set a new daily low early at $0.009497, near support at Tuesday's low of $0.009498. Traders are concerned over whether the Group of Seven industrialised nations will decide to intervene together to cap the yen's gains when the G7 meets on January 22. Worries about intervention pressured March yen Thursday and most of the week.

The one standout in the IMM currency market's trade was the March Australian dollar, the trader said. One fund bought about 2,000 contracts to bring nearby Australian dollars to a new contract high of $0.6693.

Strong jobs data out of Australia supported the contract.

At settlement, March yen was down $0.000026 at $0.009507, euros off $0.00590 at $1.03000, Swiss francs off $0.0041 at $0.6405, sterling off $0.0014 at $1.6466, Canadian dollar up $0.0017 at $0.6907, Australian dollars up $0.0101 at $0.6689 and Mexican pesos up $0.000925 at $0.103500. -Reuters