Firm But Holds Off Tuesday Highs

EUR/USD stretched its recent recovery to $1.1966 in pre 1600BST fix trade Tuesday, dropped to $1.1918 through the fix before it edged higher, though met resistance ahead of $1.1940. USD under pressure into Asia, led by a sharp move lower in USD/JPY, saw rate push up to $1.1953 before USD/JPY recovered which allowed EUR/USD to drift back to $1.1928. Fresh USD sales into Europe has taken the rate to $1.1948, aided in part by Cable's positive reaction to the UK CPI release, as support noted in EUR/GBP toward Gbp0.9000. Resistance remains into Tuesday's high of $1.1966, a break to bring $1.2000 into view, though expect some headwind resistance to emerge around the $1.1980 level. Support noted into Tuesday's breakout level of $1.1920, as well as a round the broken resistance (previous high) at $1.1916. EZ Final CPI data at 1000BST, not usually a major market mover. FOMC Minutes later in the day at 1900BST.