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Rate met resistance around the 50%......>

EURO-DOLLAR
MNI (London)
EURO-DOLLAR: Rate met resistance around the 50% retracement of the move down
from the Apr15 high of $1.0991 to Friday's low of $1.0727 at $1.0859 (intraday
high $1.0860) before rate eased back to $1.0817 in late Europe where it met
decent support ($1.0809 38.2% $1.0727-1.0860). Rate recovered to $1.0827 and
currently looks to be settling around $1.0825. Moves seen in tandem with
EUR/CHF, this rate having recovered off Friday's lows of Chf1.0516, with this
morning's SNB reserve data 'confirming' actions to keep the cross above
Chf1.0500. With the recovery in the cross it is seen relieving downside pressure
on EUR/USD via recycling for reserve adjustments. However, market still sees the
EUR vulnerable and will be watching Thursday's ECB meeting with added interest
(SNB removed the floor 5 years ago ahead of the ECB introducing QE).       
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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