Hawkish comments from Fad's Powell......>

EURO-DOLLAR: Hawkish comments from Fad's Powell acted to further boost UST

yields, which in turn gave the USD the weight to break below $1.1500 in late NY

trade, the rate touching an extended low of $1.1465. Recovery high was marked at

$1.1494 in the NY/Asia transition, dipped back to $1.1470 in the open volatile

environment before it edged to $1.1488 into Tokyo open. USD strength, along with

EUR/JPY sales, acted to take rate back to retest its Wednesday low. Recovery

efforts remained below $1.1480. Rate dipped again, probed the earlier base to

mark a low of $1.1464 then bounced to $1.1478 into Europe. However, USD firm

tone remains in place with rate continuing to trade heavy. Support remains

around the $1.1465 level, a clear break now needed to expose $1.1450 where

option linked support expected to emerge on approach. Traders aware that the

$1.1450 level holds the expiry of a decent sized E2.17bn option Friday, with

E1.66bn rolling off same time with a strike of $1.1500. ECB's Coeure, Nowotny &

Hansson due to speak today. Domestic data calendar seen light, attention on US

weekly Jobless Claims and Factory Orders, though attention will be switching

over to Friday's US Employment Report.