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*** Rate managed to squeeze up to a.....>

EURO-DOLLAR
MNI (London)
EURO-DOLLAR: *** Rate managed to squeeze up to a recovery high of $1.1785
Thursday in NY, off $1.1704. However, tech traders suggest that while rate is
held by $1.1785/1.1800 it keeps downside potential open. The $1.1780 level
corresponds to the 200 week moving average, closed below last Friday and will be
watched for tonight's close. US CPI in focus, which following on from Thursday's
weaker than forecast  PPI, could add to disappointment on a miss for those
looking for one more rate hike this year (market median 0.2%mm, 1.8%yy; core
0.2%mm, 1.7%yy). Fed Dudley last night seen by some as not as upbeat as had been
hoped for. Break of $1.1800 to negate recent bearish undertones and open
potential for a stronger recovery, while a break of $1.1685/75 to expose
recently reported dip demand area between $1.1650/25. Rate trades around $1.1765
at posting. 
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com

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