After seeing Eur/Usd extend to recovery.......>

FOREX: After seeing Eur/Usd extend to recovery highs of $1.1932 into Thursday's

end month fix, early Asia saw rate mark a low of $1.1887 before fresh demand

allowed it to edge back and move to $1.1933 into the European open before

momentum faded. After posting a fresh intraday high of $1.1940 rate eased off,

with the main upside driving force of Eur/Gbp also backing off to Gbp0.8826 from

its high of Gbp0.8836. Further paring of sterling longs in early Europe saw rate

ease to $1.3520 area. Gbp/Usd broke below $1.3500 as rate extended its

corrective pullback from earlier high of $1.3550. The pair jumped back above

$1.35 on release of stronger than forecast UK Manufacturing PMI data. Rate had

been pushed as low as $1.3478, as market probed for stops below $1.3484(post fix

low Thursday). Cable recovered to $1.3495 into data. Usd/Jpy encountered early

pressure in Asia following news the US had suspended the Tax Bill vote until

1600GMT today. Support from the Asia low (Y112.32) cushions for now, a break

here opens a deeper move towards Y111.99/77 (38.2%/50% Y110.84-112.70). The

Eur/Jpy break back under Y134.00 with added weight from weaker UST yields saw

the rate slip sharply to the Y112.30/35 area.