Early risk on in Asia allowed EUR/USD...>

EURO-DOLLAR: Early risk on in Asia allowed EUR/USD to edge to a high of $1.1333,

extending its recovery off its Monday pullback low of $1.1303. However, as

Chinese equities back off best levels the risk appetite faded and allowed rate

to ease back to that $1.1303 level into Europe. $1.1303 was the high on Jul02

and provided decent resistance Monday before the returning US market pushed it

through to a high of $1.1345 as US markets took their lead from positive Chinese

equity markets. Support therefore seen between $1.1303/00, a break to open a

deeper pullback toward $1.1280/75 ahead of $1.1250/40. Resistance $1.1330/35

ahead recent highs at $1.1345, $1.1349 and $1.1353. Risk remains a key driver of

direction with equity markets providing the main barometer. 

- Germany IP due at 0700BST, median forecast 11.1%mm, -16.9%yy. France Trade

Balance at 0745BST.