Rate continued to ease away from........>

EURO-DOLLAR: Rate continued to ease away from Tuesday's high of $1.1349 on risk

aversion, driven by the equity market reaction to US COVID-19 spread. The rate

managed to make a show under $1.1200 into early NY trade, touching a low of

$1.1191 before the pressure on risk was given some relief by regulatory

relaxation surrounding new Volcker proposals which helped support sentiment, a

rally in bank share prices helped stem further COVID losses. US regulators

approved a roll back of

restrictions on banks investing in covered funds. EUR/USD recovered to $1.1231

with resistance in this area capping further recovery. A host of US data came in

mainly in line and caused little reaction. Despite the dip under $1.1200 the

move failed to challenge support at $1.1180, with stronger interest noted at

$1.1168/63. A break here to expose $1.1135/30 ahead of $1.1120. Resistance

$1.1230/35, $1.1250/60.

- A light data calendar for EU Friday, focus on US Personal Income, PCE Deflator

and final UofM.

- Equities provide risk barometer, provides direction via USD strength.