8 January 2001, 16:19 US FX Daily Outlook: Euro/dollar, dollar/yen pause their uptrend
By Cornelius Luca, BridgeNews
New York--Jan. 8--The greenback is starting the week on a mixed tone,
pausing both its decline versus the euro and its gains against the
Japanese yen. The euro fell victim to cross sales and profit taking after
marking Friday a six-month high of 95.95 cents to the dollar. The European
currency slipped versus the sterling on news that French firm Lafarge has
agreed to by U.K.'s Blue Circle for 3.1 billion sterling cash.
* * *
The euro also dipped against the yen on rumored sales by a U.S.
investment bank for a sell-order. Dollar/Swiss franc mirrored euro/dollar
by reversing Friday's losses, while dollar/Canada drifted down in quiet
activity. None of the key pairs managed to trade outside their Friday's
respective ranges except for the pound sterling, which dipped back below
the psychological 1.5000 level on a mix of profit taking and speculative
sales after climbing to a five-month high of 1.5100.
Dollar/yen had a quiet overnight run as the Tokyo market was closed
for a national holiday.
The U.S. calendar of events is dominated by speeches by Atlanta
Federal Reserve Bank President Jack Guynn and Dallas Federal Reserve Bank
President Robert McTeer at about 1300 ET.
While it remains under intraday selling pressure, euro/dollar's
uptrend since October continues unabated. If euro/yen sales intensify in
the U.S.
session, dollar/yen might test the support of its previous resistance line
at 115.68.
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