9 January 2001, 16:38  US FX Daily Outlook: Euro/dollar lower on continued profit-taking - part1

By Kyle Peterson, BridgeNews Chicago--Jan. 9 The dollar was mixed overnight, as the euro sank to a five-day low of 93.86 cents to the dollar on ongoing profit-taking despite generally supportive euro zone economic data. The greenback hit a four-day low of 115.60 yen, also on profit-taking, but remains trapped in Friday's range. Trade for both pairs overnight was mostly quiet. The euro/dollar continued to pull back from the six-month high reached Friday, as the 0.9600 level remains protected by options players. Dollar/yen took little interest in Japanese news and data that should have supported. The pair is edging lower still from the 17-month high reached Friday. Dollar/Swiss franc moved to a five-day high of 1.6222, while sterling/dollar followed the euro/dollar to an 11-day low of 1.4880. Meanwhile, dollar/Canada was positive but still lodged in Monday's range of 1.4927 to 1.4991. The U.S. econ agenda is bland. Richmond Fed manufacturing and service sector December surveys are due out at 1000 ET. U.S. traders are likely to sell euro/dollar and dollar/yen lower.

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