960403

IMM currencies

mostly lower

CHICAGO: IMM currency futures finished mostly lower as gains in marks and yen eroded late.

Total yen futures volume was estimated at about 8,000 contracts and total volume for marks was estimated at 7,000 contracts.

"It is going to get quieter and quieter before Friday's number," one floor trader said.

Currency futures will be opened for an abbreviated session April 5 for the March payrolls and March unemployment data. Payrolls are expected to rise 60,000 from a gain of 705,000 in February.

A higher-than-expected payrolls number for March or an upward revision in February's already steep rise could jack up US interest rates once again.

"The main picture is of an improving economy and a rise in US interest rates," William Bohnsack, President of W H Bohnsack & Co, said.

"The story can be told by just looking at the CRB (Commodity Research Bureau) index," he said. The CRB index rose to 252.57 on Tuesday.

He said rising commodity prices indicate an improvement in business conditions, which will increase demand for money.

"Since the Federal Reserve is reluctant to add a great deal of money right now, the supply is being soaked up," Bohnsack said.

While US dealers are still generally bullish on the direction of the US dollar, they were reluctant to step in as dollar buyers.

However, late in the day yen, marks and Swiss francs forfeited their slim gains, with June yen dipping below the pivot point of $0.009400 or about 107.40 spot yen. Cash yen remained weak versus Swiss francs, as the spread earlier broke through a key level on the daily, weekly and monthly charts.

While Swiss francs were higher against yen, the currency remained slightly weak against the dollar.

A floor trader said as a result, resistance at 1.2000 and support at 1.1940 spot are "very strong," he said. Those levels correspond to $0.8400 and the pivot point of $0.8441 in June Swiss francs.-Reuter