By Cornelius Luca
New York, May 21 (BridgeNews) - The euro added to its losses from Friday to hit a six-day low of 87.40 cents partly because Morgan Stanley Capital International (MSCI) reweighted its global indices this weekend in favor of U.S. and U.K. stocks and against euro zone assets. Concerns that this week's Ifo survey of German business sentiment will show more disappointment after 10 consecutive months of decline also undermined the single currency.
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Sterling/dollar, which soared Friday on sales of euro/sterling linked to the MSCI expectations, fell into negative territory on profit taking but not before it marked a 17-day high of 1.4414. Dollar/Swiss franc retained most of its gains after climbing to a one-week high of 1.7530, while dollar/Canada reversed losses from a 17-day low of 1.5315.
Dollar/yen slipped modestly within Friday's range as its consolidation within the apparently iron-clad range of 120-125 continued unabated. Yen's gains were supported by the fact that MSCI reduced Japan's weighting by less than expected.
Monday's event agenda includes speeches by Cleveland Fed Bank President Jerry Jordan, Federal Reserve Governor Laurence Meyer, Federal Reserve Governor Edward Gramlich, and St. Louis Fed Bank President William Poole. In addition, Philadelphia Federal Reserve releases quarterly survey of professional forecasters.
Euro/dollar remains under selling pressure, with traders bracing for a test of the year low at 0.8695. Dollar/yen will likely tread water between the key 122.50 and 124.00 technical levels.

Current Previous Change Global Global
NY open NY close low high

USD/JPY 123.20 123.50 -0.30 123.02 123.80
EUR/USD 0.8748 0.8808 -0.0060 0.8740 0.8820
EUR/JPY 107.79 108.75 -0.96 107.68 108.88
GBP/USD 1.4368 1.4386 -0.0018 1.4357 1.4414
USD/CHF 1.7508 1.7425 0.0083 1.7402 1.7530
USD/CAD 1.5346 1.5319 0.0027 1.5315 1.5353
AUD/USD 0.5284 0.5293 -0.0009 0.5277 0.5316
NZD/USD 0.4267 0.4280 -0.0013 0.4262 0.4291
SP.1 1295.40 -0.10 1291.50 1298.50
ND.1 1937.00 3.00 1921.00 1954.00