Continued pressure on the EUR, post.....>

EURO-DOLLAR: Continued pressure on the EUR, post ECB and into the NY close,

allowed EUR/USD to eventually break under $1.1200 to extend react low to

$1.1177. Move was seen as the final push to squeeze out weak longs, the rate

abolle to recover to $1.1195 into the close. Early upside pressure in Asia saw

rate struggle to clear back above $1.1200 with early Europe providing the demand

to edge it above its overnight high of $1.1201 to $1.1209. Recovery efforts

remain lack lustre with market likely to be adjusting positions ahead of this

afternoon's release of the key US Employment Report (market median NFP 180k, AHE

0.3%mm). Market whispers see NFP release coming in slightly below the median,

while historical data would suggest that market under estimates Feb data. Some

suggest that a sharp revision in Jan data could be of more interest. Germany

Factory Orders just released disappoint but little reaction.  

- Support $1.1177/74(Mar7 low, channel base), $1.1150, $1.1120/00. Resistance

$1.1229(NY hourly high Mar7), $1.1250-65.

- Option expiries of note, $1.1150(E1.06bn), $1.1220-25(E1.64bn),

$1.1250(E2.59bn), $1.1270-80(E1.73bln)