Late NY dollar demand continued through.......>

FOREX: Late NY dollar demand continued through Asia and into early Europe as

market reacted to comments that prospective Fed Chair candidate Taylor had a

good reception with Trump. Taylor seen on the hawkish side. Trump due to meet

present Fed Chair Yellen Thursday. This dollar demand, along with ongoing

political concerns in Spain, weighed on the euro through Asia, took Eur/Usd to

an extended low of $1.1775(further extending the pullback from the $1.1875 react

high on US CPI release Oct13). Europe added to this downside pressure taking

rate to an intraday low of $1.1755 with recovery efforts capped at that Asian

low. Sterling provided main focus in Europe, the pound picked up decent demand

ahead of UK CPI data release which allowed cable to recover to $1.3286. CPI data

came in as forecast, cable was sold down to $1.3257 in initial react but pared

losses quickly. Dovish comments from new BOE MPC Members Ramsden and Tenreyro

eased cable back to $1.3250 late morning. Usd/Jpy remained stuck in recognizable

range which left Eur/Jpy to track Eur/Usd moves. Aud eased in early Europe as it

tracked gold lower but recovered on back of Eur/Aud sell off. Little reaction

seen on Germany ZEW and EZ CPI confirmation data.