EURUSD ground higher on Wednesday.......>

EURO-DOLLAR: EURUSD ground higher on Wednesday printing a high of 1.1676 after

5SM called for Savona to withdraw his candidacy for the role of economy

minister, although he is still the Lega's preferred candidate. A source report

noted that "Italian Prime Minister-designate Cottarelli will move slowly in

trying to form a technocratic government in order to give parties time to try to

agree on a more "political" administration."

- The cross was also underpinned by a strong round of regional German CPI prints

which culminated in a strong flash national print. Broader USD weakness also

added additional support.

- The cross trades a shade softer at 1.1655 in early Asia-Pacific dealing with

support noted at 1.1643 and then 1.1594, while resistance comes in the form of

the May 24 high at 1.1750, followed by the 21-DMA at 1.1795.

- Eurozone CPI & unemployment data is due on Thursday. It is also worth noting

the sizable nearby option expiries set to roll roll off at today's 10AM NY cut:

1.1600(E1.27bn), $1.1650(E1.65bn), $1.1700(E2.24bn), $1.1720-25(E1.82bn),

$1.1745-50(E1.83bn), $1.1775-80(E930mn), $1.1800(E5.46bn).