LONDON, Dec 30 (MNI)- The dollar retained a weak tone during the European morning session on Thursday, reaching new lows against the Swiss franc as well as extending recent weakness agains the euro and yen. EURO SUMMARY: Opened in early Europe around $1.3235 dollar and also the new low seen in dollar-Swiss earlier. Asia saw the pair range $1.3218/$1.3259 with an overall firmer tone, leaving the euro at $1.3232 in early European trading. The US move Wednesday followed US yields closely, although bonds have given up some ground in the European morning session. European trade extended euro highs to $1.3264 but the euro remains below Tuesday's $1.3274 high, while above the 21-daily moving average of $1.3214. The break over this latter level improved the technical outlook for the pair along with recent bullish daily studies. Dollar-Swiss recovered off lows but remains on a soft footing. There was an early European morning push at Chf0.9371, although traders said the low was reached in the thin conditions and better amounts went through at Chf0.9375. In the cross, euro-Swiss traded to Chf1.2398 with main trade at Chf1.2400. Fibonacci levels for euro bulls include $1.3277 and $1.3329, which come ahead of the 100-day moving average and 17 Dec high - coinciding at $1.3359. ITALY DATA: Dec sa mfg morale gains 1.3 pts to 34-month high of 103.0 - Tops most forecasts in MNI survey of analysts; median forecast 102.0 - Orders stronger; outlook for demand, sales prices little changed - But outlook for production marginally weaker - Prospects for overall economy littled changed ECB: The ECB says a total E311 mn was borrowed at the marginal rate via the overnight facility Weds. The central bank added a total of E78.863 bn was deposited. YEN SUMMARY: Europe opened with the yen at Y81.50/Y107.84 to a fresh seven-week low of Y81.30. However, the market then retraced to around Y81.50 and the early move defined the range for the rest of the Asian and European morning sessions. Offers are expected to re-emerge at the Asian highs with some corporates reportedly having left sell orders as well as above the markets at Y82.00 and Y82.50. The technical picture also remains weak for the dollar, having extended ground below the base of the Ichimoku cloud, which is at Y82.40, while daily studies remain weak. Bears have their eye on the Nov 1 low of Y80.22. Back then, it was protection ahead of a Y80 barrier, which was said to have prevented a return to the historic lows of Y79.70/75 seen in April 1995. In the meantime, bids are expected to emerge around Y81.00. With focus on the dollar, the crosses have been sidelined. Euro-yen trades Y107.89, having slowly recovered from an early fall, which came in line with dollar-yen at the start of Asia. This took the cross from around Y108.00 to Y07.60 before a quick bounce in thin conditions. Japanese markets are now closed until January.

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