POUND AND CANADIAN DOLLAR CAPTURING ATTENTION Interest in the currency futures market has shifted to the soaring British pound and the potentially explosive Canadian dollar, and away from the dull Continental and Japanese currencies, analysts said. The June pound, which added 6.3 cents over the past week-and-a-half to reach a new contract high of 1.5930 to the dollar on Monday, has spawned a new-found speculative boom. "Brokers have to push their clients somewhere...and technically, the pound is in the best shape," PaineWebber analyst Jason Gillard said. "We've tried to take a bullish approach to the pound, and we're going to stay with that, there's no reason to change," Smith Barney analyst Craig Sloane said. Many traders took on long pound/short West German mark futures positions, although some of those cross-trades were liquidated yesterday, Sloane said. The fundamental keys to the pound's rise have been relatively high U.K. interest rates and a vague optimism surrounding the British economy, analysts said. "Money seems to be chasing yields," William Byers, of Bear Stearns, said of the 10-1/2 pct U.K. base lending rate. Many analysts are skeptical about further gains in the pound, on the inference that the Bank of England will seek to relieve upward pressure on the currency by pushing down interest rates after the nation's budget is released March 17. The budget itself could have an impact, depending on how well it is received, but analysts say relative interest rates and oil income remain the main influences on the currency. However, the market may be able to absorb lower U.K. interest rates, as it has done when other countries have cut their discount rates, and extend the pound's rally, Sloane said. The Canadian dollar has not been rising like the pound, but Sloane and other analysts cautiously predicted a big move soon. The sideways price pattern in the June contract, with smaller and smaller price ranges, has formed a "bull flag" on price charts, technically-oriented analysts said. "It makes for an explosive type of situation that often leads to a breakout," in this case to the upside, Sloane said. Byers agreed there was potential for the June Canadian dollar to rally above the 77.00 cent level from the most recent close at 74.80 cents to the U.S. dollar. "At this stage of the game I'd call the market long-term positive, but for the technical burden of proof you need a close above (the previous contract high of) 75.25," Byers said. As to the traditionally more active currencies, stability was the catchword and reluctance the watchword among analysts. Sloane said it was important that June Swiss francs and June German marks held above support at 0.6400 and 0.5400, respectively, closing at 0.6438 and 0.5430. Yesterday's rebound showed the market was still very respectful of the Paris accord, and the threat of central bank intervention by the G-5 nations plus Canada. "We may still probe to see what the parameters are," Byers said, "but people are very reluctant because they don't know where the central banks will be (to intervene)." Gillard said the mark could drop to a previous price consolidation area around 0.5250 based on the profoundly sluggish West German economy, but that he would be a buyer at that level.