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IMM currency futures end mostly higher

CHICAGO: IMM currency futures closed mostly higher Thursday, boosted by weaker US equities markets.

March euros ended stronger, having cleared resistance at $1.01550, $1.01800 and $1.02070 on buying led by dealers. The contract hit buy stops from $1.01700 to $1.01730.

The euro opened lower, weighed down by selling in the euro/pound cross and a German Ifo business climate index that rose to 99.6 in December from 98.9 in November but fell short of the 100 level that market players had expected earlier.

The European Central Bank's decision to leave rates unchanged also pressured the contract, as market sentiment had grown that the ECB was likely to tighten credit.

Nearby yen settled unchanged, after opening weaker and seesawing as the market was uncertain about whether G7 finance ministers would make a statement promoting a lower yen, traders said.

Dealer buying pushed to contract through intraday resistance at $0.009575 early.

Market thinness exaggerated moderate deals, traders said.

Softer-than-expected weekly US jobless claims and another record monthly US trade deficit that was wider than forecast had little impact on a G7-focused market.

Jobless claims for the week ended January 15 fell to 272,000 from 311,000 the previous week, versus a forecast 295,000.

The US international trade deficit for November was a record $26.5 billion versus an expected $25.7 billion.

"The market seems to have shrugged that off," said Steven Cerier, senior currency economist at Standard & Poor's MMS. "I think the market pretty much expects that the trade deficit is going to be a record every month."

The March peso took out its contract high early at $0.104500 and traded up to $0.104700 before reversing and trading lower.

At settlement, March yen was steady at $0.009577, euros up $0.00410 at $1.02050, Swiss francs ahead $0.0036 at $0.6347, sterling up $0.0104 at $1.6538, Canadian dollar up $0.0027 at $0.6921, Australian dollars up $0.0022 at $0.6661 and Mexican pesos off $0.000150 at $0.104150.-Reuters