May01 high of $1.1265 proved elusive....>

EURO-DOLLAR: May01 high of $1.1265 proved elusive in Monday trade, the rate's

recovery faltering at $1.263 before it dropped back to $1.1222 into the close.

Risk aversion was given some reprieve through Asia and into Europe Tuesday which

allowed for a recovery to $1.1244 ahead of the NY open but eventually succumbed

to USD strength, driven by USD/JPY recovery with EM and Scandi currencies the

main beneficiaries in risk flows. EUR/USD was pressed to a low of $1.1204 post

1600BST fix with underlying tone remaining heavy. Support seen into $1.1200, a

break to expose $1.1185/80 ahead of $1.1165. Initial resistance currently seen

at $1.1220, a break to open a move toward $1.1250. Risk remains the key driver

of EUR/USD direction though Wednesday's release of Germany, France and EZ GDP

data will be closely watched.