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IMM currency futures

finish calm trade mixed

CHICAGO: IMM currency futures on Wednesday firmed late and closed calm pit trading mixed.

Traders tied the final nudge higher to shortcovering after a languid session of tight range-trading that saw most units slowly slip to the downside.

"It was definitely a little bit of shorts getting out," said a floor broker of the late firming. "But it was a range-bound, boring market."

They said the market continued to look for incentive from the crosses, with the mark correcting some of its recent losses against the yen and Italian lira.

Some noted anticipation that Bank of France could cut rates at Thursday's meeting but noted the market had already priced in some French credit easing.

"We do have some expectations the French will cut rates tomorrow," said Mike Malpede, currency analyst with Refco Inc. "But it's already factored in".

He also noted early rumours overseas that Bank of Japan had asked traders to stay late, suggesting to some players that it was considering intervention to aid the US dollar.

But that never materialised, he added. The Australian dollar succumbed to selling after a slowdown reported in Australian wage growth stifled ideas that Australian interest rates could rise.

Currencies ignored news that March US durable goods orders rose 1/4 percent versus forecasts for a 0.3 percent decline. Without defense, orders fell 1.3 percent compared to expectations for a 0.6 percent drop.

June mark futures overnight set a new contract low at $0.6585, roughly dollar resistance near 1.5230, while Swiss francs matched its contract low at $0.8140, or 1.2350. Nearby yen stayed below resistance at $0.009476 or 106.30 spot.

At the end of pit trading, June yen rose $0.000005 to $0.009451, marks gained $0.0003 to $0.6599, Swiss francs added $0.0009 to $0.8166, Sterling lost $0.0016 to $1.5148, Canadian dollar fell $0.0018 to $0.7328, the Australian dollar fell $0.0031 to $0.7839, and the Mexico peso jumped $0.000475 to $0.129775.-Reuter