Rate rallied off a Tuesday morning......>

EURO-DOLLAR: Rate rallied off a Tuesday morning low of $1.0810, the buying

starting into the 0800BST fix, with rate pushing up to a high of $1.0888 into

the NY open. Rate retained some buoyancy in early US trade only to eventually

reverse tack and slip back to $1.0818 ahead of the close. Move tracked EUR/CHF,

this latter rate having led the Tuesday morning rise on the back of strong

demand, prompting speculation of official help(not confirmed) but this cross had

given back all of its gains by the close. Into Asia and the USD again came under

pressure as risk sentiment improved, led by the positive performance in US and

Asian equities. Rate initially met resistance above $1.0850 before it edged on

to $1.0857 into Europe. ECB MonPol announcement and month-end approaching

Thursday, the latter expected to see USD sales into the fixes. For today Germany

inflation data, states begin releasing from 0700GMT(Saxony), pan-Germany CPI due

at 1200GMT. EZ M3 due at 0800GMT. US GDP at 1230GMT ahead of FOMC at 1800GMT.

The Multinational Finance Framework Review to be presented today by the EC(no

time). Fitch downgraded Italy to BBB- overnight. 

- Support $1.0840, $1.0818, $1.0810/00. Resistance $1.0857/61, $1.0888/90.