By James Thornhill, BridgeNews
New York--Jan. 23
Dollar/yen and euro/yen stole the show in an otherwise quiet overnight session. Both erased Monday's losses thanks to good U.S. demand and more comments from ex-Japan Ministry of Finance official Eisuke Sakakibara. Euro/dollar extended Monday's rally up to 94.50 cents, but pulled lower into the U.S. open.
* * * Dollar/Swiss franc mirrored euro/dollar moves, with its slide cushioned ahead of the 20-day moving average at 1.6219. Sterling/dollar extended Monday's rebound to a high of $1.4737 on reported model-fund demand.
Meanwhile, dollar/Canada hit a one-week low of 1.5005, only to bounce back 1/2 a cent on short covering ahead of today's Bank of Canada rate decision (0900 ET).
With no major data releases due, U.S. dealers will likely look to Wall St. for leads. Recent ranges are likely to hold. Atlanta Fed president Jack Guynn speaks on the economic outlook at 1200 ET.