EURUSD touched highs of $1.1500.........>

EURO-DOLLAR: EURUSD touched highs of $1.1500 yesterday, but failed to extend

gains. Profit taking off the high with added broad USD demand later eased to

$1.1430 at the NY close.

- Demand from reported Japanese names provided the early support in Asia to

$1.1437, but as traders faded the move, the rate later eased to settle in a very

narrow 14 pip range.

- Reminder today of the large E1.28bn $1.1415/20 option-expiry, which could

anchor. Also, some larger ones scheduled to roll off tomorrow at

$1.1400(E2.15bn), $1.1425(E3.03bn), $1.1500(E6.41bn).

- Main focus today on the FOMC, although this is expected to be a non-event.

It's widely anticipated there will be no change to policy with focus on the

language and any discussions on whether the Fed will cut IOER by 5bps. Reminder

this is a non-press conference meeting.