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Fed announcement of a mid meeting cut...>

EURO-DOLLAR
MNI (London)
EURO-DOLLAR: Fed announcement of a mid meeting cut of 50bps(1500GMT Mar03)
prompted a knee jerk spike to a fresh YTD high of $1.1212. However, market was
well positioned for the move and reaction ran into willing take profit sellers
which pressed rate back to $1.1142. Rate recovered as the Fed move was digested,
edged to $1.1195 before momentum faded and rate drifted off to $1.1168 into the
close. Rate lifted to $1.1185 in early Asia before rate resumed its downside
drift, easing to a low of $1.1143 into Europe. Markets now try to assess the ECB
react to Tuesday's Fed move, expecting an ease but suggesting this will wait
until the ECB meeting. The Fed move has sparked market concern at what prompted
such action, what do the Fed know about the current virus situation that the
market doesn't. COVID-19 remains the key market driver.
- Germany Retail Sales at 0700GMT, market median 0.9%mm, 1.5%yy. Final EZ Svcs
PMI's, EZ Retail Sales provide the domestic data interest. US ADP at 1315GMT
ahead of PMI Svcs and Non-Mfg ISM at 1445GMT and 1500GMT respectively. Beige
Book 1900GMT.
- Support $1.1140, $1.1100-1.1095. Resistance $1.1185-1.1200, $1.1212.  
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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