Post FOMC USD sales allowed EUR/USD.....>

EURO-DOLLAR: Post FOMC USD sales allowed EUR/USD to extend recovery to $1.1317

in early NY Thursday before momentum faded. Rate dropped back to $1.1271 into

the 1600BST fix with recovery efforts held below $1.1300 (close $1.1292). Early

Asia continued this consolidation before it lifted to $1.1309 on the back of

risk off flows, led by pressure on USD/JPY and prompted by a NYT report that

said US Trump had approved retaliatory strikes against Iran (following the

shooting down of a US drone in a disputed position), though said he had pulled

back from the decision. Rate settled back on $1.1300, broke back below to

$1.1286 in early Europe. Underlying tone retains some buoyancy though traders

note that Fed dovishness is balanced by recent ECB Draghi comments, maybe more

so which could act to place upside brakes, possible eventual reversal. 

- Resistance $1.1309/17, $1.1324/27 ahead of key resistance at

$1.1348/51(200-wma, Jun7 high/ 200-dma). Support $1.1271, $1.1260/55. 

- Expiries of note for today's NY cut, $1.1200-10(E3.16bln),

$1.1240-50(E1.47bln), $1.1300(E2.44bln), $1.1345-50(E1.15bln)

- EZ Flash PMI's France, Germany and EZ in focus.