German Constitutional Court decision....>

EURO-DOLLAR: German Constitutional Court decision that the ECB's PSPP programme

may not be compatible with some EU treaties provided additional sell pressure on

the EUR Tuesday, pressing EUR/USD through support at $1.0886/88 to an extended

low of $1.0826. Rate recovered in early NY to $1.0887, failing to move back

above its broken support area, before it dropped back to $1.0834 as market

awaited the ECB response. ECB noted the ruling but added it will ensure its

policy is transmitted to all parts of the eurozone and that it is fully

committed to inflation mandate after the ruling. Some positive reaction though

response was fairly muted as rate edged to $1.0858 before it sank back to

$1.0834 into the close. Asia consolidated Tuesday's losses, trade through the

session was contained within $1.0832/46. Support remains at $1.0826, stronger

into $1.0810/00. Resistance $1.0860, stronger between $1.0886/88 ahead of

$1.0900. 

- Germany Factory Orders at 0600GMT, EZ final Svcs PMI at 0800GMT, EZ Retail

Sales 0900GMT. US ADP Employment data at 1215GMT of interest ahead of Friday's

Employment Report.