It has been a heavy 48 hours or so......>

EURO-DOLLAR: It has been a heavy 48 hours or so for the the Euro with the EURUSD

cross last trading around 1.2300 after it had a brief look below the figure in

early Asia-Pacific hours.

- Wednesday saw a round of cautious ECB speak at the ECB watchers conference,

with Draghi noting the threat that the Euro could pose to inflation.

- 5-Year 5-Year EUR inflation swaps are well off of the January highs, which

will be adding further pressure to the currency.

- In the short term, focus will be on the EUR 2.62bln worth of 1.2300 option

expiries set to roll off at the 10AM NY cut on Friday.

- The 55-DMA sits at 1.2277, with bears focussing on this level. Daily studies

are well placed for a fresh leg lower. Bulls now need a close above $1.2348 to

gain breathing room and above $1.2446 to target 1.2555-1.2639.