CNH Demand Adds to Positive Risk Outlook

Strong open in US equities Wednesday seemed to provide some counter to the expected month-end USD demand, though EUR/USD was influenced back from its pre fix high of $1.1752(having recovered off an earlier low of $1.1685) before it dropped back to $1.1706 post fix, recovering to $1.1727 into the close. Holiday thinned Asian session saw rate extend recovery to $1.1732 in opening trade, dipped to $1.1717 before market reacted to strong CNH demand. This move acted to push EUR/USD to $1.1751 ahead of Europe, with rate holding firm at writing. Resistance expected between $1.1750/55, more toward $1.1770 ($1.1774 55-dma). Asian traders note some decent option expiries due Friday(post NFP) from $1.1750 through to $1.1800 which could be linked to resistance. Support $1.1717 ahead of $1.1700, stronger at $1.1685. Final EZ Mfg PMI data due this morning, along with EZ Employment and PPI. US Jobless Claims, Personal Income/Spending, PCE and key ISM provide data interest into the afternoon. ECB Lane(dove), Fed Williams(dove) and Bowman provide the speaker interest. Risk favoured with upbeat outlook for Friday's US NFP following ADP and Chicago PMI releases Wednesday.