ECB Nowotny confirmed his hawkish.......>

EURO-DOLLAR: ECB Nowotny confirmed his hawkish outlook Tuesday, comments on ECB

rate hikes took Eur/Usd to an extended high of $1.2378 before ECB spokesperson

countered the move by reminding the market that Nowotny's views were his own and

didn't represent the view of the Governing Council. Rate dropped back to $1.2325

but buyers quickly moved in to take advantage of the dip and edged rate back to

$1.2361 ahead of the close. The recovery continued in Asia, though at a slow

pace, the rate edged on to $1.2370 into the European open with rate holding firm

at writing. ECB Draghi speaks at 1100GMT but not expected to provide any major

headlines ahead of Thursday's release of ECB Minutes. Attention on US CPI at

1230GMT ahead of US FOMC Minutes at 1800GMT to gauge US rate path. Resistance

seen at Tuesday's high of $1.2378, a break here to expose next band of

resistance between $1.2400-15. Support $1.2350 ahead of $1.2325/20.