Rallied off a low of $1.0810, in a......>

EURO-DOLLAR: Rallied off a low of $1.0810, in a move that looked to have begun

into the 0800BST fix, to a high of $1.0888 with various suggestions for the move

linked to a short squeeze, led by the early spike higher in EUR/CHF (which

rallied with possible official aid as moved up in tandem with USD/CHF) along

with month-end flow(Apr30 today's value date). Rate failed to hold gains in

early NY and eased to $1.0825, similar to that seen into Monday's close. EUR/CHF

gave back all of its early Europe gains, the rate having been driven up to

Chf1.0612 before easing back below its pre rally low of Chf1.0560 before meeting

support in the Chf1.0555/50 area(key remains activity into Chf1.0500). Markets

will again watch for any European morning moves in this cross Wednesday, with

month end flow remaining relevant, early asset linked models suggesting USD

sales to be seen into month-end fixes. EUR/USD now seen at $1.0825, stronger

between $1.0810/00 ahead of $1.0789/85(61.8% $1.0727-1.0888/hourly low Apr24),

$1.0765(76.4%) and $1.0750. Resistance $1.0888/90(intraday high/61.8%

$1.0991-1.0727), $1.0929(76.4%). Key upcoming events FOMC Wednesday evening,

ECB/Month-end Thursday.