: Dollar runs into profit-taking, eye on German vote High Street Networking

16 November 2001, 09:08 : Dollar runs into profit-taking, eye on German vote

Dollar slips to 122.20 yen having run into profit-taking ahead of the weekend after failing to sustain an early rally above 122.50. -- Selling from U.S. banks and perhaps option-related, but sentiment overall remains bullish on the dollar. -- Euro shade firmer at $0.8837 helped by talk of bids from euro zone national central banks protecting the downside around $0.8775. -- Market wary ahead of a confidence vote in the German government but dealers suspect Chancellor Schroeder will narrowly win and provide and excuse to cut some short euro positions. -- A defeat in the vote would force Schroeder to call early elections and resulting political uncertainty would not be good for the euro. -- The Greens coalition party holds a trial vote at around 0700 GMT and that should provide an indication to outcome of the main vote, due at around 1100 GMT.