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

MNI (London)
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
- 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%
MNI London Bureau | +44 203-586-2231 |
MNI London Bureau | +44 203-586-2231 |

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