Positive outlook for US-China trade.....>

EURO-DOLLAR: Positive outlook for US-China trade talks Friday boosted US assets

which saw EUR/USD pressed back from a high of $1.1410 to a low of $1.1353 around

the 1600GMT fix. Rate recovered to $1.1372 before it closed at $1.1363. Regional

holiday in NZ Wellington led to thinner conditions than usual at the start of

Asian trade. Rate was shoved to a marked high of $1.1409 before it dropped to

$1.1360/70 into the Tokyo open. Newswire suggestion that US-China trade talks

have stalled, due to IP theft issues, tempered risk outlook until release of

China GDP (as expected at 6.6%) with China DEC IP and Retail Sales seen firmer

than forecast. This release allowed EUR/USD to edge up to $1.1380 where it met

resistance, though pullbacks were buoyed above $1.1370. Early Europe has seen

another challenge on the $1.1380 level(touched $1.1381) but resistance remains

in place. A break and clear of $1.1380 leaves $1.1400 exposed, the level holding

the strike of an expiring option for today's NY cut, E1.24bn. Next resistance

$1.1410. Support $1.1360/50. MLK holiday in the US Monday expected to impact

liquidity. Focus this week on Davos Tue-Fri, Germany ZEW Tue, ECB meeting Jan24

along with EZ flash PMI's. Germany Ifo Jan25.