Rate managed to rally to a high of......>

EURO-DOLLAR: Rate managed to rally to a high of $1.1294 around the London fix

Tuesday before it sank back to $1.1253. Late demand managed to lift rate back to

$1.1292 ahead of the close. Asia took over the recovery baton and lifted rate on

to $1.1320 as early traders reacted to Tuesday's Brexit news, which provided a

boost for risk appetite. However, realization that the proposal, which will be

presented to UK Cabinet at 1400GMT, has many hurdles to negotiate took the shine

off risk and allowed rate to drift off to $1.1286 ahead of Europe. Late session

demand has emerged, the rate making a tentative show back above $1.1300. Germany

GDP at 0700GMT, EZ GDP 1000GMT, though overshadowed by the EU's response to the

Italian Budget(Italian Govt has held deficit target proposal at 2.4%, though

also holds GDP target at 1.5%, had been rumours it would be lowered to 1.0%) as

well as US CPI(possible boost from energy prices). UK Cabinet meets at 1400GMT

to discuss Brexit proposal, watch for headlines. Support $1.1280, $1.1255/50.

Resistance $1.1320-30. Expiry of note, $1.1350(E1.43bn).