Despite reported month-end and SOMA.....>

EURO-DOLLAR: Despite reported month-end and SOMA USD demand Wednesday EUR/USD

failed to break the Aug15 low of $1.1301 as it posted a low of $1.1302. MNI

suggested yesterday that demand could emerge from a certain major player to

counter the USD demand which seems to have been the case. Rate recovered to

$1.1328 but had sunk back to $1.1310 into the close. Risk aversion eased in

Asia, helped in part by GBP's recovery on positive Brexit headlines, and helped

EUR/USD's recovery. Nikkei recovery boosted EUR/JPY, though there were some

headwinds as EUR/GBP eased on sterling strength. However, EUR/USD rallied to

$1.1350 before momentum. Some of the shorter term longs covered back ahead of

Europe which eased rate to $1.1338. Fresh demand in Europe has allowed rate to

edge on to a fresh high of $1.1352, though momentum not too convincing so far. A

data light domestic calendar with attention on US Mfg PMI and Weekly Jobless

Claims ahead of Friday's main NFP event. Resistance noted between $1.1350/60

ahead of $1.1388. Traders aware that $1.1400 holds the strike of a large option

expiry for today's NY cut, E4.06bn. Main support remains into $1.1300.