ANZ note that "EUR/USD implied..........>

EURO-DOLLAR: ANZ note that "EUR/USD implied 3-month vol remains within the

established range & below the average of the past 2 years. The market will

continue to look for "jumps" and the focus is on the numerous challenges that

EUR faces. These include Italian budget discussions, Brexit negotiations, the

forthcoming '19 European parliamentary elections & Turkey. The populist

challenges EUR faces are clear. Despite the tentative improvement in EZ data & a

calmer trade environment, the forthcoming calendar may reduce the appetite for

establishing long EUR positions, delaying our forecast recovery. Meanwhile, the

Fed will stay steadfast in its commitment to interest rate normalisation. The

ECB is concerned about a potential tightening in monetary conditions. A broad

1.10-1.20 range may prevail for much of the remainder of '18. A nimble approach

to trading is required, as shifting risk perceptions will drive twists & turns.

Divergent policy moves with the US & perceived event risks encourage a

preference to sell rallies in the short term. 1.17 has acted as good resistance

over the summer. A sustained break below 1.14 is needed to open up the

downside."