5 January 2001, 15:51  US FX Daily Outlook:Dlr/yen hits new 17-mo high, eases pre-data

By James Thornhill, BridgeNews New York--Jan. 5--Dollar/yen and euro/dollar both set new significant highs overnight, before pulling lower on profit-taking heading into today's U.S. December jobs report. Dollar/yen hit a 17-month high of 116.91 with buying interest focused in euro/yen, which hit a ten-and-a-half-month high of 111.80. Euro/dollar stretched up to another six-month high of 95.95 cents. * * * Dollar/Swiss franc was heavy in reflection of euro/dollar gains, but held above Tue's 11-month low of 1.5900 thanks to a firm euro/Swiss franc. Sterling/dollar was capped at $1.5075 thanks to euro/sterling gains. Meanwhile, dollar/Canada continued its upward retracement hitting an -day high of 1.5047. All eyes will be on the U.S. jobs report, which is likely to show continued loosening in the labor market and slowing in the U.S. economy in December. The BridgeNews consensus forecast says non-farm payroll jobs are expected to have risen 115,000 in December, up from 94,000 in November, but below the average monthly gains of 166,000 for the first 11 months of 2000.

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