--Euro tumbles from six-week highs against the dollar as EU leaders prepare to gather --Currency unmoved by well-received Italian auction in the absence of Greek debt accord --Emerging market currencies also under pressure By Alexandra Fletcher Of DOW JONES NEWSWIRES LONDON -(Dow Jones)- The euro fell in European trading Monday, extending a pullback from six-week highs against the dollar as investors grew nervous about the slow progress of Greece's debt restructuring talks and as Portuguese borrowing costs hit record highs. Against the buck, the euro fell toward $1.31, having traded as high as $1.3235 late Friday. It also hit a four-month low against the Swiss franc as the lack of a weekend agreement between Greece and its private bond holders tested the patience of investors, with tensions also simmering between Greece and Germany over the terms of a new bailout ahead of a summit of euro-zone leaders in Brussels later in the day. Signs that Portugal could be dragged into the maelstrom further weighed on sentiment, as yields on Portugal's 10-year sovereign bonds rose above 15%. "The euro is running out of steam, correcting itself after the rally before the weekend," said Ian Stannard, European head of foreign exchange strategy at Morgan Stanley. "Any good news for the euro has already been priced in by the market so it is vulnerable to any negative news this week," he said. Given the mood, a well-received Italian sovereign bond auction failed to provide any relief, as the Australian dollar and other growth-sensitive currencies also lost ground against the dollar. Among emerging markets, the Polish zloty, Czech koruna and Hungarian forint also came under pressure. Currency moves, however, were magnified by thin end-of-the-month trading volumes, dealers warned. Looking ahead, aside from the EU Summit, the U.S Chicago Federal Midwest manufacturing index for December is expected at 1330 GMT. At 1143 GMT, the euro was trading at $1.3126 against the dollar, compared with $1.3219 late Friday in New York, according to trading system EBS. The dollar was at Y76.65 against the yen, compared with Y76.69, while the euro was at Y100.60, compared with Y101.45. Meanwhile, the pound was trading at $1.5693 against the dollar, compared with $1.5734 late Friday in New York. The ICE Dollar Index, which tracks the greenback against a trade-weighted basket of currencies, was at 79.232, compared with 78.838 late Friday in New York. A summary of key levels for chart-watching technical strategists is below:

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