By Cornelius Luca
New York, March 28 (BridgeNews) - Mounting fears that the European Central Bank (ECB) will postpone easing its monetary policy once again during Thursday's meeting encouraged further liquidation of euro positions. The single European currency fell to a six-day low of 88.45 cents to the dollar, one-month low of 107.42 yen, three-month low of 0.6194 sterling, and a six-day low of 1.5295 Swiss franc.
* * *
The selling pressure from euro/yen also helped dollar/yen extend its decline since peaking Thursday at a 22-month high of 124.33. Betweenlong liquidation, late Tuesday demand for yen calls and ubiquitous talk oflast minute yen repatriation before Friday's deadline kept dollar/yen onthe defensive.
With no events planned for Wednesday, U.S. traders face two choices: attempt triggering intraday stop-loss orders while waiting for Thursday's ECB meeting, or try to drill a new low for euro/dollar beneath 0.8832, the three-month low reached Thursday. Should the latter scenario come to fruition, look for dollar/yen to slip as well, to around 121.00.