LONDON, April 8: The euro dipped against the dollar on Monday in largely technical trading ahead of German labour market data, while the yen held firm against the US unit.

The single was trading for $0.8772 against $0.8793 late Friday in New York.

The dollar stood at 131.32 yen from 131.65 on Friday.

ABN Amro economist Aziz MacMahon said that there was a risk of the euro moving lower on technical factors, t figures expected on Tuesday.

The German economy has been slow to turn, it’s starting to catch up compared to others in the euro zone.

If Germany begins to catch up a little bit ... it can provide support to the euro, but overall lately the told AFP.

The market was also keeping a close watch on events in the Middle East after a recent flare-up of Israeli-Palestinian violence that has rattled US stock markets and triggered a rise in the price of oil.

US Secretary of State Colarch of an elusive peace pact between the two sides, and the success of his trip could determine the path of the dollar, analysts said.

As Israel refuses to respond to US demands to withdraw its army and protests against possible military actiondisputed global leader is clearly showing cracks,” said WestLB economist Michael Klawitter.

However with the Prime Minister’s (Junichiro Koizumi) popularity waning and elections scheduled for the end of the month, further question marks may be raised over the government’s ability to press ao was being traded at 0.8772 dollars against 0.8793 dollars late Friday, 115.18 yen (115.76), 0.6124 pounds (0.6135) and 1.4650 Swiss francs (1.4639).

The dollar was worth 131.32 yen (131.65) and 1.6701 Swiss francs (1.6666).

Sterling bought Swiss francs (2.3860).

On the London Bullion Market, the price of gold fell to $299.35 an ounce from $301.0 late Friday.—AFP