MIDSESSION IMM CURRENCY FUTURES: MOSTLY FIRMER; NEAR HIGHS Chicago-Nov. 23-FWN--A WEEKEND SHUFFLING OF THEExchange Rate Mechanism (ERM) of the European MonetarySystem (EMS) has lifted most currency futures to slightlyfirmer levels against the U.S. dollar, near sessionhighs. Volume is moderate in sporadically active trade. In a 10-hour meeting over the weekend, the EuropeanMonetary Committee agreed to a realignment of the ERM,effectively devaluing both the Spanish peseta and thePortuguese escudo by 6%. While Spain, Ireland and Norwayhave all since raised key lending rates in an effort todefend their ailing currencies, trade is somewhat nervous asmarket participants attempt to sort out the next EMS moveand any possible rate cuts by the German Bundesbank. Despite general consensus that the Bundesbank will notcut key lending rates following its meeting Thursday,sluggish economic growth and growing political unrest hasrenewed speculation that the German central bank will soonhave lower interest rates in an effort to relieve festeringtensions associated with the ERM. "The Bundesbank said they're not going to lower ratesin so many words--the U.S. dollar remains in the driver'sseat," one corporate trader here said. She expects the U.S.currency to test 1.70 D-marks by the end of the year. Most currencies have veered little from their openingranges, currently hovering at slightly firmer levels, nearsession highs. The Swiss franc, German mark and Britishpound have led today's gains, sources said, with theJapanese yen trailing closely behind. The Canadian andAustralian dollars are both slightly weaker. Currently, basis December futures contracts, the Germanmark is up 33 basis points at .6225; the Japanese yen is up14 at .008055; the Swiss franc is up 47 at .6940; theBritish pound is up 76 at 1.5132; the Canadian dollar isdown 15 at .7758; and the Australian dollar is down 39 at.6820.
