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IMM currencies end mostly higher

CHICAGO: IMM currency futures ended mostly higher on Thursday as firm Japanese economic data propped yen and a European Central Bank warning of the risk of rising inflation supported the euro.

June euro traded at slightly lower levels initially but short covering and downticks in US equities buoyed the market in midmorning dealings, traders said.

"There were some comments from ECB officials late last night and today, all of them suggesting they are going to pull the trigger on rates sooner rather than later," a floor broker said.

Euro zone gross domestic product rose 0.9 percent in the fourth quarter quarter-over-quarter supported by strong household consumption and that boosted the June euro, traders said. Minor strength in euro/yen also underpinned dealings.

Technicians said the dominant trend is still lower, but a rally over the March 6 high of $0.9764 would force another wave of short-covering. The contract probed near that resistance in early trade.

June yen spent most of the session at higher levels but was unable to rally over Wednesday's high of $0.009600.

Traders said fears of additional intervention by the Bank of Japan to limit appreciation in the yen limited upticks.

A 0.8 percent rise in January machinery orders versus forecasts for a 7.4 percent decline helped support June yen overnight.

Traders were looking for more near-term strength in the June yen with next resistance at $0.009620.

At settlement, June yen was $0.000039 higher at $0.009543, euros up $0.00630 at $0.97420, Swiss francs up $0.0038 at $0.6082, sterling up $0.0004 at $1.5814, Canadian dollars down $0.0006 at $0.6874, Australian dollars up $0.0056 at $0.6158 and Mexican pesos down $0.000150 at $0.104825.-Reuters