Better than forecast US data............>

EURO-DOLLAR: Better than forecast US data (continuing weekly claims and durable

goods) provided another boost for risk via equity market performance which

provided the lift to take rate through resistance at $1.1060, the moved helped

in part by suggested demand emerging into the 1600BST fix, with stops also

suggested to have been fired off. Rate has extended its recovery to $1.1090,

with an initial 1.618% swing projection target noted close by at

$1.1093($1.1008-1.0871). Further resistance expected into $1.1100, a break here

to expose the Mar30 high of $1.1163. Month-end approach Friday with preliminary

model calls for USD sales to be seen. Before, when we have had expectations for

such flows, and EUR/USD has moved the day ahead, it often leads to a sharp

reversal during the European morning(long squeeze) before see the expected USD

sales emerge into the key 1600BST fix.

- France and EZ CPI due Friday but risk outlook and month-end flows to drive.

Support $1.1035/30, $1.0990,