Pullback from the earlier Asian high....>

EURO-DOLLAR: Pullback from the earlier Asian high of $1.2067 seen meeting

support into $1.2040, the rate currently trading around $1.2045. The Eur

continues to enjoy buoyancy following on from Thursday's hawkish ECB Minutes.

Focus switches to today's release of US CPI at 1330GMT, market median 0.1%mm,

2.1%yy; core 0.2%mm, 1.7%yy, with US Retail Sales due at same time, median

ex-autos 0.4%mm. Deutsche has noted in its Alpha Alert that the Usd mostly

trades on the softer side on US CPI days, whether there is an upside or downside

surprise in core CPI, basing this on Usd/Jpy action. Strong sell interest said

to remain in place at and above $1.2080 and said to extend through to a large

barrier at $1.2100. Break here could prompt demand by models. Below $1.2040 and

next support seen at the NY low of $1.2028.