At 10:00:00 AM US January NAPM non-man (exp 54.0%, prev 53.0%) The dollar extended lower in earlyEuropean trade, then firmed, capping its losses against the European majors. The single currency trimmed itsgains after eurozone business activity fell to a 21-month low, prompting profit-taking after it hita high of$0.9433. However, business expectations rose to 70.1 from 67.7, marking a turnaround from last August whenit began to fall. Analysts say the single currency is also likely to stay underpinned by renewed concerns over theUS economy. EUR/$ climbed a half cent from its Friday US close at $0.9346 to a day's high around 94.33where it met resistance around $0.9435/40, Support is seen around $0.9280 and $0.9240. Swiss franc followedthe pair's movements, climbing to a high of 1.6337 before easing back to around 1.6375. Sterling also roseagainst the dollar, but fell against the euro, as it followed the movement of the euro/dollar. The pound fell fromearlier highs after the UK January CIPS Service Survey showed evidence that Britain's service sector weatheredthe January slowdown rather well, falling only slightly to 57.1 from 57.6 in December. Some analysts hadpredicted a sharp slowdown, since official data show economic growth slowing to a two-year low of 0.3% inQ4 00, largely due to a downturn in the service sector. Cable is now hovering around 1.4747. Cable also drewstrength from its higher yield differential and from a positive manufacturing survey last week, which rose to 52,hitting its highest level in a year. In any event, these figures should not prevent the BoE from cutting rates by 25bp at its February 8th meeting. Dollar/yen is hovering around a session low in the 115.70s, draggeddown bygains in the euro/dollar, despite the fact that the eurozone business activity index slowed to its lowest in 21months. The dollar and euro eased back from gains made in late Asian trade, as they hit session highs of 116.04and 109.23 respectively. Prompting traders to sell yen was the large drop in the Nikkei of 318 points, or 2.32%.Forexnews sees USD/JPY facing resistance around 116 yen followed by 116.30, while support is seen around115.25/30. The Tokyo index followed declines in Wall Street on Friday, while sales to liquidate cross-heldshares also continued to weigh on the market, with high tech and telecom stocks were under the mostsellingpressure. This came after the Nasdaq lost 4.4% on Friday and Dow fell 1.0%, as most analysts predict a furtherslowdown of the US economy. Today, US NAPM non-manufacturing figures are expected unchanged from lastmonth when they plunged by 5.5% in December to a level of 53%. This shows the US service sector, whichaccounts for 2/3 of the economy, still expanding but at a slowing pace as compared to the figures recordedearlier in the year.