Rate extended its recovery from.........>

EURO-DOLLAR: Rate extended its recovery from Tuesday's low of $1.1104 to a high

of $1.1163 Wednesday in NY. Rate eased to $1.1143 before climbing back through

the 1600GMT WMR fix to $1.1162 then drifted off before settling around $1.1150

into the close. Risk optimism was evident ahead of the US-China phase one

signing, though actual inking of the agreement prompted little reaction. Asian

trade saw rate edge to $1.1158 before it drifted off to $1.1145 through a very

slow session. A buy the rumour, sell the fact scenario linked to the trade

agreement only fulfilled the first part as traders noted no apparent negative

factors, with attention already switched to phase-two talks. 

- Germany final CPI at 0700GMT saw little market reaction. ECB Minutes at

1130GMT. US data main focus on the day, Retail Sales, Weekly Jobless Claims and

Phila Fed at 1330GMT. Housing data and Business Inventories at 1500GMT. 

- Support $1.1140/35, $1.1120, stronger into $1.1100(Expiries $1.1100-10

E2.06bln). Resistance $1.1155/65, $1.1180. 

- Option expiries Friday, $1.1090-1.1105(E2.61bln), $1.1120-25(E1.71bln),

$1.1145-55(E2.16bln), $1.1200(E3.3bln)