Rate pared pre end month fix gains......>

EURO-DOLLAR: Rate pared pre end month fix gains through the NY afternoon

Wednesday, the rate having pushed to a high of $1.2475 before it eased off to

$1.2387. This Usd demand allowed Usd/Jpy move through its recent resistance high

of Y109.20. Eur/Usd closed in NY at $1.2414 before recovery extended on to

$1.2429, though momentum was lacking. Asian traders suggested that despite the

hawkish FOMC market looked to be unwilling to short Eur/Usd, one US investment

bank added that the Usd looked to be back on its pre end month softening track.

However, early Europe has sold back into this Asian rally, the rate pressed down

to $1.2399(early Asia low $1.2406). Rate currently trades around $1.2408.

Traders note the decent sized expiries for today's NY cut, $1.2400(E1.16bn) and

$1.2415-25(E2.7bn) the stand out interest. A clear break below $1.2400 to open a

deeper move toward $1.2387/84. First day of the month and could be some overhang

of Eur/Gbp demand to be seen, will be keeping a watch on that. 

* EZ Manufacturing PMI's due from 0815GMT(Spain) through to EZ data at 0900GMT.

* US Initial Jobless Claims at 1330GMT to draw attention ahead of Friday US

NFP/AHE(though no real relation)