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Eases on General USD Short Covering

EURO-DOLLAR
MNI (London)

EUR/USD recovered off Thursday's low of $1.1818 through the 1600BST fix, the rate able to edge to $1.1894 after the Europe close before closing the day around $1.1875. Rate managed to touch $1.1883 in early Asia before general USD short covering emerged, prompted ahead of this afternoon's US Employment Report, with US Trump signing an executive order banning US residents from doing business with China ByteDance and WeChat, as well as reimposing aluminium tariffs on Canada, knocking risk. Rate was pressed to a low of $1.1820, just shy of Thursday's lows, before rate met willing dip buyers. Rate has recovered to $1.1844 into Europe. Early focus on Germany IP, forecast, following Thursday's Germany Factory Orders which came in better than expected and helped EUR/USD to its fresh YTD high of $1.1916. Forecast 8.0%mm, -11.4%yy. Germany Trade data released same time. France Trade and Production data also of interest but all overshadowed by US jobs data.
* Support $1.1820/18, $1.1800, $1.1793(Aug5 low) and $1.1780(61.8% $1.1696-1.1916). Resistance $1.1860/65, $1.1880/85, $1.1893/94.

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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