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EUR/USD pushed to an extended...........>

EURO-DOLLAR
MNI (London)
EURO-DOLLAR: EUR/USD pushed to an extended recovery high of $1.1402 ahead of
Tuesday's NY open as the USD was seen on the defensive on market perception that
the FOMC could deliver a dovish-hike at today's FOMC rate announcement. However,
rate reversed tack and eased back to $1.1350 in NY before it settled around
$1.1365 into the close. Asia again picked up on the dovish-hike speculation,
placed USD under pressure that took rate up to $1.1390 before it consolidated
between $1.1375/90 ahead of Europe. Some suggestions now emerging that the
market may have over played positioning ahead of the FOMC, if Fed Powell seen
more hawkish could catch the market short USD. Weak talk around in recent
sessions that Fed could rein in its QT program. Reports around that Italy will
ratify a deal with the European Commission today over its budget plans, which
could provide added buoyancy for the EUR, but FOMC overshadows. 
- Resistance remains into $1.1400, $1.1402 Dec18 high and 76.4% $1.1443-1.1270.
Break exposes $1.1420. Support $1.1350 ahead of $1.1337.  
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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