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Early Tuesday pressure on the USD.......>

EURO-DOLLAR
MNI (London)
EURO-DOLLAR: Early Tuesday pressure on the USD reversed ahead of the NY open.
The rate topped out at $1.1419 before the pullback gained traction into the US
session as it extended the move to $1.1319 by the close of Europe. Rate
recovered to $1.1348 before it settled around $1.1340 into the close. Rate
managed to post an early high of $1.1346 into Tokyo before USD demand emerged
again to gradually press rate down to a low of $1.1317 into Europe. USD gained
ground on warmer trade rhetoric from China, which in turn aided some paring in
US equity futures, following Tuesday's Wall Street fall. Rate currently trades
around $1.1326. US markets closed Wednesday to mourn the passing of George H
Bush which should thin markets as we progress through the afternoon. ECB Draghi
due to speak this morning(speaks on promoting sound banks). EZ
Services/Composite PMI data at 0900GMT, followed by EZ Retail Sales at 1000GMT
provide the morning's data interest. Resistance seen between $1.1345/50, support
remains at $1.1317, with further interest seen into $1.1300(level still has some
decent sized expiries with this strike due to roll off Thu/Fri).   
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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