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Moved through $1.1000 to a low of.......>

EURO-DOLLAR
MNI (London)
EURO-DOLLAR: Moved through $1.1000 to a low of $1.0985 Wednesday in a move seen
driven by investors positioning ahead of today's ECB announcements. Market view
is for a rate cut, with possible tiering, and renewed QE (though this could be
delayed). Rate managed to recover back above the figure post fix, settled around
$1.1010 into the close. Apart from today's key ECB announcement attention will
also be on the release of US CPI, which following Wednesday's PPI, could come in
on the stronger side. Asian traders have suggested that support seen back in
place between $1.1000-1.0990 with resistance at and above $1.1020 (Asia range
$1.1008-15). The $1.1000 level also holds the strike of decent sized option
interest, total E1.48bln, E1.35bln of that are EUR puts. 
- Ahead of ECB data interest includes Germany and France final inflation for
Aug, 0600GMT/0645GMT. EZ IP at 0900GMT.
- Risk in general favour after apparent goodwill gestures between China and US
but ECB/US CPI overshadow.   
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com

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