Month-end models were again proved......>

EURO-DOLLAR: Month-end models were again proved correct, predicting strong USD

sales to be seen into the 1600BST fix, which provided for a strong recovery

rally which saw rate bounce from a ECB press conference low of $1.0833 to a high

of $1.0972 into said fix. Some of those positioned for the rally seemed to be

happy to book profit on the initial move above $1.0900 leaving the way open for

the extended move. Post fix and rate eased back, finding support into

$1.0920($1.0919 38.2% $1.0833-1.0972). Residual demand has provided some late

buoyancy allowing rate to nudge back toward $1.0950 at writing. A lot of centres

in Europe will be closed Friday for the May Day holiday which could provide for

some added volatility into the new month as today's ECB announcements get

digested.

- Focus Friday on final US mfg PMI, though overshadowed by Mfg ISM. US

Construction spending also due.

- Support $1.0920, $1.0900, stronger into $1.0890/86(area of recent highs and

61.8% $1.0833-1.0972).  Resistance $1.0972, $1.0991/96(Apr15 high/61.8%

$1.1163-1.0727).