Rate managed to stretch its recent......>

EURO-DOLLAR: Rate managed to stretch its recent recovery to $1.1251 in post fix

trade, the move seen on positive risk which itself has been driven by the

continued move higher in equities, aided today by better than expected ADP data,

ahead of Friday's NFP, and non-Mfg ISM. Traders had been suggesting a challenge

on the $1.1250 level, adding that area expected to meet decent resistance. Since

touching $1.1251 rate has retreated to $1.1232, though corrective pullback seen

relatively shallow. Equity market performance continues to be the active driver

in markets, the boost to the risk outlook placing general pressure on safe haven

currencies, USD/JPY extending its rally through the earlier high of Y108.85(50%

111.71-105.99) but meeting resistance on the approach to Y109.00. Break to

indicate another leg higher in risk on, targeting 61.8% level at Y109.52, which

in turn should also expose EUR/JPY 2020 high of Y122.87 and lift EUR/USD with

it, if it can clear $1.1250. Next resistance $1.1267(topside 2.0% 10-dma

envelope) ahead of $1.1275 and $1.1290/1.1300. Support $1.1200, $1.1185/80. 

- ECB Monetary Policy announcement Thursday, bank seen topping up their PEPP

program in an effort to stem a protracted Coronavirus downturn.