10 October 2001, 12:42  Forex - Dollar up against major currencies in early London trade

ONDON (AFX) - The dollar was up against major currencies in early trade as investors unwound positions put after the September 11 events, amid a lack of fresh lead, dealers said. They put particular emphasis on the dollar/yen cross, which they said is likely to break to the upside. Kit Juckes, analyst at Royal Bank of Scotland noted a certain lack of trend. "We are normalising the foreign exchange market. We have seen some movements but they are kind of failures to break out of ranges rather than trends," he said. "If the the dollar/yen breaks out on the upside, that will get people buying and that could turn into a move," he added. The euro was softer against the dollar in quiet trading activity. Strategists said the downward move reflected a shift in opinion towards the European Central Bank monetary policy outcome at their meeting tomorrow. "Increasingly people are realising the ECB won't be cutting rates tomorrow. There is a shift in sentiment," he said. Juckes noted that the euro/dollar had moved down a figure over the past three days and felt a further slide was unlikely. "The euro/dollar failure to break through the 0.9220 usd upside means that the bottom of the range is probably as hard to break," he said. Sterling continued to drift lower against the dollar as investors started to lock profits on their three months old long positions, according to Phil Roberts, strategist at Barclays Capital. Strategists said key support lay at around the 1.4520 level. Roberts said that a break below the support level would be interpreted as the end of the uptrend of the last four months. "Part of the move comes off the sterling/yen cross, which two days ago broke down of a triangle top; it's position squaring," he added.

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