ANZ believe that "a more positive.......>

EURO-DOLLAR: ANZ believe that "a more positive backdrop for the euro is

emerging, having been rocked by trade anxiety and elevated growth concerns in

Q2. Stabilising growth and reduced trade anxiety should allow for a gradual EUR

recovery in coming months. Fundamentally, a weaker EUR is not needed, whilst

sustained EUR depreciation could unsettle renewed trade dialogue between

Brussels and Washington. Higher US policy rates are not a reason to sell the

EUR. We think euro weakness has run much of its course for now and advise buying

into weakness. Reduced trade uncertainty, a stabilisation in the data,

discounted policy rate differentials, a large current account surplus and the

geopolitical sensitivities of exchange rate moves all suggest it may be close

to, or already have reached, its lows on this move. We advise buying the EUR/USD

at current levels and averaging into any near term weakness. We look for a

medium term move towards 1.25 and above."