Rate dipped to $1.1080 in initial.......>

EURO-DOLLAR: Rate dipped to $1.1080 in initial FOMC react as market initially

reacted to the hawkish cut but rate quickly bounced back as more attention was

switched to a stronger reluctance to hike rates in the near future. EUR/USD

rallied to $1.1152, close firm around $1.1148. Asia took over the baton and

edged rate on to $1.1170 before it lost momentum ahead of the European open,

which allowed it to trim back to $1.1158. Post FOMC pressure on the USD was seen

adding to expected USD sell flows at today's month-end fixes, with traders also

aware of decent sized option expiry interest for today's NY cut with strikes at

$1.1200(E1.04bln) and $1.1230-40(E1.38bln). Option expiries for Friday's NY cut

(post NFP release) also of note with $1.1150 holding strikes of E1.1150 for

E2.84bln(E2.74bln EUR calls) and $1.1200 for E5.28bln(E5.21bln EUR calls).

Technical traders will also watch tonight's close, above $1.1109(Sep high) will

provide an outside month close which could further the upside into November. ECB

Draghi steps down today, Lagarde takes over.

- Support $1.1150, $1.1110/00. Resistance $1.1170/80, $1.1200.