FOMC Thursday opened the door to a......>

EURO-DOLLAR: FOMC Thursday opened the door to a July rate cut (data and G20 may

potentially derail this view), which the market was widely expecting, but had

the effect of placing pressure on the USD across the board. EUR/USD spiked to

$1.1254, having been held earlier in the day between $1.1190-1.1210 by the large

option expiry interest here, profit take supply then knocked it back to $1.1221

before it settled around $1.1227 into the close. Asia took over the baton of USD

react sales, the rally picking up stronger momentum into the Tokyo open which

lifted rate to an eventual high of $1.1273. Corrective pullbacks met support at

$1.1260 with underlying tone remaining buoyant. 

- Resistance now seen at $1.1284/89(61.8% 1.1348-1.1181/Jun14 high), $1.1300

with technical bulls seeing $1.1347/48 exposed (200-wma/Jun7 high). Support

$1.1260/50, $1.1220.

- ECB Economic Bulletin 0800GMT. ECB Rehn, de Guindos and Enria due to speak.

Main focus on this afternoon EZ Consumer Confidence 1400GMT.