General USD strength through............>

EURO-DOLLAR: General USD strength through Wednesday trade saw EUR/USD sink to an

eventual low of $1.1361, after the break of its initial low of $1.1380, ahead of

the close. Early reprieve in Asia allowed rate to nudge back to $1.1368 before

fresh pressure emerged to take rate to a fresh low of $1.1357 before it settled

back above $1.1360 ahead of Europe. Overall tone remains bearish, with recovery

efforts remaining very shallow. Expect some support into $1.1350($1.1351-46

61.8% 1.1216-1.1570/Jan04 low), with some already setting their sights on the

$1.1290/80 area. Resistance now seen at $1.1380 ahead of $1.1400/10. 

- Italy drew some attention yesterday, as the IMF said it "falls short of

comprehensive reforms" required to produce sustainable growth, with the EU

commission set to slash its forecasts for Italian GDP growth later today.

- EZ focus turns to German industrial output due at 0700GMT(median 0.8%mm,

-3.4%yy, though after poor Germany Factory Orders Wednesday has expectation high

for another miss), ahead of France & Italy's industrial output releases, due

Friday. Elsewhere, Thursday will see the releases of ECB's econ bulletin & EU

Commission's econ forecasts, as well as remarks from ECB's Mersch.