Rate drifted off to $1.1250 during......>

EURO-DOLLAR: Rate drifted off to $1.1250 during Thursday's NY session, having

failed again at the $1.1287 level (Apr10 high) during earlier European morning

trade. The move to $1.1287 had seen rate pare all of its ECB react losses, the

rate having hit a low of $1.1230 Wednesday only to recover into release of FOMC

Minutes. Rate closed Thursday around $1.1255 but was seen picking up mild demand

in early Asian trade which nudged it up to $1.1262. Strong EUR/JPY demand at the

Tokyo fix (suggested M&A linked, MUFG buying DZ Bank's aviation finance arm for

E5.6bn?) emerged to punch rate through recent resistance above $1.1280 to an

eventual high of $1.1295 but met stiff headwinds ahead of $1.1300. Rate seeing a

slight easing into Europe but underlying buoyant tone remains evident.

- Option expiries for today's NY cut include, $1.1200 E1.81bn, $1.1250 E1.19bn

and $1.1300 E1.22bn. 

- Support $1.1250, $1.1230. Resistance into $1.1300 ($1.1304 50-dma), break

exposes $1.1326/31.

- EZ IP at 0900GMT. ECB Praet speaks at 1245GMT. US UofM Sentiment due at

1400GMT.