Fed Powell's comments Wednesday were....>

EURO-DOLLAR: Fed Powell's comments Wednesday were taken as 'dovish' which in

turn saw the USD snap back on recent gains. EUR/USD rallied from below $1.1270

to a high of $1.1388 before it drifted off to $1.1367 into the close. Despite

the move on Powell headlines most analysts suggest that the reaction was

overdone and that the speech was seen providing a cautious positive tone.

However, it does highlight that the market has become very reactive to Fedspeak.

Early Asia took on the Powell reaction and sent UST yields lower, boosted

equities. EUR/USD was initially pressed to a deeper pullback low of $1.1363

before equities faded gains, boosted JPY which in turn weighed back on the USD.

EUR/USD rallied back to retest Wednesday's high, extending the reactive move to

$1.1392. Again momentum faded on approach to $1.1400, the rate drifting back to

$1.1378 in early Europe. Germany CPI provides the focus this morning, with

Saxony beginning the state releases ahead of the pan-German data at 1300GMT. EZ

Confidence Indicators due at 100GMT. A light US data calendar with main interest

on FOMC Minutes at 1900GMT. Resistance $1.1394 (61.8% $1.1472-1.1267) ahead of

$1.1400. Break to expose $1.1420/25. Support $1.1365/60.