Euro/dollar: Europe open $1.1826,......>

EURO SUMMARY: Euro/dollar: Europe open $1.1826, range $1.1804-37, NY open

$1.1813, range $1.1650-1.1815

*Slippage back under $1.1800 to extended pullback lows of $1.1737

after the ECB reduced its pace of asset purchases to E30bn a month from Jan-Sep

2018.

*The pair got a lift off its intra-day low of $1.1737, jumping to recovery highs

of $1.1780 before fading. The move was in reaction to

the "risk to growth" was changed for the upside (and somewhat stronger)but still

alludes to forex risk downside.

*The release of the ECB press release was perceived as dovish which was no

surprise, however the euro came under immediate pressure dropping to fresh

session lows of $1.1689.

*A spike in US Tsys yields and XAU breaking the support at $1270.00

has seen broad based dollar demand with the rate dropping to fresh intraday lows

of $1.1650. Traders reported people have been caught long and liquidity was

thin, suggesting that the move was over exaggerated.