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Dovish comments from Fed Kashkari and...>

EURO-DOLLAR
MNI (London)
EURO-DOLLAR: Dovish comments from Fed Kashkari and Brainard overnight kept
pressure on the USD, though EUR/USD held off a retest of Thursday's high of
$1.1286 but is holding toward its intraday high of $1.1275 in early Europe (Asia
range $1.1249/74). Market appears to be listening more to Fed dovish speak
(brushed aside Barkin and Bostic comments and ignored stronger than forecast US
CPI data), seen insuring against a 'surprise' 50bp cut at this month's meeting
(though most market analysts see a cut of 25bp in Jul, another in Sep).
Resistance seen at $1.1286/88(Jul11-05 highs), a break to expose $1.1300/05.
Support $1.1250/45.
- EZ IP at 0900GMT, with ECB Visco and Italy Tria to speak in Milan at same
time.  
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com

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