NY reversed Tuesday's recovery, seen....>

EURO-DOLLAR: NY reversed Tuesday's recovery, seen through Asia and the European

morning, taking the rate from a pre NY open high of $1.0996 to a low of $1.0941

before closing the day around $1.0955. Suggestions that the US-China upcoming

trade talks could be cut short provided some risk aversion during the NY

session. Some attention was set on possible China retaliation via its CNY fix,

after reports US Admin was moving ahead with discussions on possible

restrictions on capital flows into China as well as imposing visa bans on any

Chinese officials linked to Xinjiang abuses. This failed to materialise which

provided some risk relief, allowed EUR/USD to drift higher, extended to $1.0966

but eased to $1.0957 into Europe. Focus today on FOMC Minutes, following

reported dissention at the last FOMC. Could show majority believe US rate has

been eased enough, though survey data released since the announcement could

weaken reaction.

- EZ fiscal headlines in focus after European Commission argued case for

pre-emptive action.  

- Support $1.0950/40, resistance $1.0995/1.1005.