By Cornelius Luca
New York, July 16 (BridgeNews) - Eurogroup chairman and Belgian finance minister Didier Reynders' reported comments that the weak euro has advantages, as it improves euro-zone export opportunities, slowed down the rebound of the single currency. An early boost of demand lifted the dollar to a five-day high of 125.31 yen on a background of ongoing Japanese economy.
As euro/dollar is struggling to add to its overnight gains that lifted it to a four-day high of 0.8593, dollar/Swiss franc slipped to a five-day low of 1.7613, drawing closer to its medium-term trendline support at 1.7574. But sterling/dollar failed to keep rank with the top European currencies and slipped within Friday's range as euro/sterling surged on M&A activity.
Dollar/Canada posted inside range gains after hitting a 1 1/2-month high of 1.5413 on Friday.
Monday's economic agenda will focus on May business inventories. But traders will keep their eyes on Fed Chairman Alan Greenspan's Wednesday semi-annual testimony to House Financial Services Committee on monetary policy.
While the Argentine crisis shows signs of receding, the risk remains that the local peso could be allowed to free-float in the same manner as the Brazilian real and the Turkish lira.
The intraday outlook for both the euro/dollar and dollar/yen is slightly bullish.

Current Previous Change Global Global
NY open NY close low high

USD/JPY 125.19 124.91 0.28 124.66 125.31
EUR/USD 0.8581 0.8547 0.0034 0.8540 0.8593
EUR/JPY 107.44 106.78 0.66 106.60 107.53
GBP/USD 1.4004 1.4032 -0.0028 1.3986 1.4040
USD/CHF 1.7637 1.7696 -0.0059 1.7613 1.7715
USD/CAD 1.5387 1.5360 0.0027 1.5366 1.5409
AUD/USD 0.5096 0.5076 0.002 0.5082 0.5113
NZD/USD 0.4074 0.4058 0.0016 0.4062 0.4079
SP.1 1222.70 -2.50 1221.30 1224.60
ND.1 1754.00 -11.50 1750.50 1771.00