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US EURODLR OPTIONS

Mixed Wing Trade

USD

Some downside continuation

US TSY OPTIONS

Bearish 5Y Insurance

EQUITY TECHS

E-MINI S&P (U1): Approaching the All-Time High

STIR

Effective Fed Funds Rate

EURO-DOLLAR
EURO-DOLLAR: ### - POV - Key support at $1.1712 give way Wednesday, the rate
extending its corrective pullback to $1.1689 in a move that was mainly
influenced by the probe below Y128.50 in Eur/Jpy. Both pairs then bounced back
just as strongly (Eur/Jpy had a few short entry triggers on break of Y128.50,
with those positions then squeezed out on the sharp return). Recently mentioned
demand interest between $1.1720/1.1680 played an active part in cushioning the
dip, the rate recovered to $1.1770 in early Asia Thursday before fresh Eur/Jpy
sales countered and pressed rate back to $1.1727 into Europe open. Trader
reports continue to favour another upside push. Some demand remains in place to
$1.1680, with stronger interest lower down in the $1.1650/25 area ($1.1650 Jun27
low, $1.1613/11 Jul26 low/50% $1.1312-1.1910). Of note, a short term technical
target emerges at $1.1639, based on the 1.618% swing of the recovery from
$1.1689 to $1.1770. Fed Dudley at 1400GMT in focus and could influence ahead of
Friday's key US CPI release. Also of note, Altice (registered in Netherlands,
controlled by Franco-Israeli Patrick Drahi) said by FT to be making a pitch for
US Charter Communications in a deal valued at around $185bn.(JW) 
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com