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EUR/USD managed to recover off..........>

EURO-DOLLAR
MNI (London)
EURO-DOLLAR: EUR/USD managed to recover off Thursday lows of $1.116 through the
1600BST fix before it met decent resistance at $1.1140 which capped. Rate then
drifted back, closing the day at $1.1129. Early Asia respected that late NY low
before taking the rate back up to retest the $1.1140 level. The bounce seen as a
reaction to the sharp sell off in USD/JPY, prompted by headline reports of US
Trump threats to impose 5% tariffs on Mexican imports. Resistance at $1.1140
again countered upside progress, before general risk aversion merged to press
rate down to $1.1125. Rate currently trades around $1.1130 into Europe. 
- Support now seen at $1.1125/15 ahead of $1.1107-00. Resistance remains at
$1.1140/45, a break to expose $1.1170.
- Germany Retail Sales at 0600GMT, Italy CPI at 0900GMT with Germany CPI at
1200GMT provides the domestic data interest. ECB Visco speaks at the Bank of
Italy annual gathering.
- US PCE, Chicago PMI and UofM Sentiment provide afternoon interest. 
- Month-end and models suggest USD demand. SOMA $10.3bln could add to USD
demand.    
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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