Dovish comments from Fed Evans only.....>

EURO-DOLLAR: Dovish comments from Fed Evans only provided a mild USD sell react,

comments not seen as a major surprise, with rate faltering at $1.1242 before

reversal. Rate has faltered between $1.1240/50 over the last few sessions, the

area holding option strike expiries for today's NY cut which could be the

influence ($1.1240-50 expiries total E2.72bln, E2.15bln of EUR calls). Rate

eased back to $1.1199 into the close. Early consolidation in Asia between

$1.1200-07(did mark a low of $1.1197 in this opening trade), extended topside to

$1.1214 in slow trade. Focus overnight was on the PBOC CNY fix, now seen as the

barometer for risk. USD/CNY fixed above Cny7.00 at Cny7.0039, its highest fix

level since April 2008, but below the forecast level which tempered any reactive

risk trade. 

- Support remains between $1.1200-1.1195 ahead of $1.1180 and $1.1168.

Resistance $1.1240/50.

- France Sentiment at 0630GMT, Spain IP 0700GMT ahead of the EU Economic

Bulletin 0800GMT.

- US Weekly Jobless Claims 1230GMT.