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Rate consolidated its recovery, seen....>

EURO-DOLLAR
MNI (London)
EURO-DOLLAR: Rate consolidated its recovery, seen through Europe and NY trading
sessions Monday. Activity yesterday was generally quiet with the rise in EUR/USD
suggested on positioning for today's month-end expected flows. Most, if not all,
bank models suggest 'strong USD sales' to be seen at today's fixings. Market
therefore seems well positioned for this flow which could act to counter any
major USD softening and may prompt a bounce in the US unit. EUR/USD was
contained within a range of $1.1700-11 through the main part of the Asian
session, getting a lift back to retest Monday's high of $1.1719 where it again
met decent resistance. Rate currently trades around $1.1711. EZ focus on release
of flash CPI and Q2 GDP (0900GMT). A break of $1.1720(76.4% $1.1750-1.1621)
exposes a falling trend line, from May14 at $1.1730-35(depending on who you talk
to) ahead of stronger resistance into $1.1750. Support $1.1700 ahead of
$1.1685/75. 
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com

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