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FOMC Minutes Inspired Correction Continues to Influence Into Europe.

EURO-DOLLAR
MNI (London)

Position adjustments/profit taking ahead of last night's release of FOMC Minutes influenced EUR/USD back below $1.1900, further extending the corrective pullback away from Tuesday's high of $1.1966. Rate touched $1.1891 ahead of the 1600BST fix, jumped to $1.1894 in the initial reaction to the Minutes release before dropping to $1.1831. Recovery efforts were capped at $1.1860 before closing the day at $1.1838. Early Asia found support above that $1.1838 level, posting an early high of $1.1853. Early Tokyo demand for USD/JPY provided a general lift to the USD, knocked EUR/USD down to retest Wednesday's $1.1831 low before Tokyo fix USD/JPY sales reversed the tone which allowed rate to push up to $1.1854. Early Europe pressed rate back to $1.1833 where it has again met interested buyers. Wednesday's sharp fall opens opportunities for dip buyers though this interest so far seen tentative. Support remains around $1.1830, then $1.1810/00 ahead of stronger area between $1.1780/70. Resistance seen into $1.1860 ahead of $1.1880/85 then into $1.1900. Little reaction to Germany PPI. Focus for the day seen on ECB Minutes at 1230BST ahead of US Weekly Jobless Claims and Phila Fed at 1330BST.

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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