Corrective pullback away from...........>

EURO-DOLLAR: Corrective pullback away from Thursday's extended high of $1.1570

eventually broke below $1.1500 after the European close, with triggered stops

taking the rate to a low of $1.1485. Rate recovered before it settled back

around $1.1500 into the close and ahead of Fed Clarida speech. Vice Fed Chair

Clarida added to the recent dovish tones which edged rate to $1.1517 into Tokyo.

Risk was given an added boost on market reaction to Tsy Sec Mnuchin pointed to

plans for top Chinese trade envoy Liu He to journey to the U.S. later this month

(could be delayed due to current Govt shutdown). This comment weighed heavily on

USD/CNY-USD/CNH which in turn allowed EUR/USD to extend recovery to $1.1531.

Rate drifted back to $1.1517 into Europe where it met support.

- Support $1.1500, $1.1485/80. Resistance $1.1530, $1.1545, $1.1570.  

- US CPI at 1330GMT, market median -0.1%mm, 1.9%yy. Ex food, energy 0.2%mm,

2.2%yy.

- Option expiry of note for today's NY cut, $1.1500(E2.51bn)