Rate saw an extended low of.............>

EURO-DOLLAR: Rate saw an extended low of $1.1510(fresh 2018 low) ahead of the NY

open Tuesday before it managed to recover back to $1.1590. Rate eased off to

$1.1520 after the European close before it settled around $1.1540 into the

close. Rate posted an early Asia high of $1.1549 then settled back around

$1.1540 for a while before marking a low of $1.1519. Rate edged back to $1.1544

ahead of Europe but seen meeting fresh supply into the new session. Risk

aversion remains in play though Tuesday's heavy sell off seems to have faded,

Asian demand for JPY failed to have any major effect on EUR/USD. Support remains

at the Asia low of $1.1519, stronger from Tuesday's low of $1.1510 through to

$1.1500 with talk in Asia suggesting option linked interest here. A move below

$1.1500 to expose $1.1480/70. Resistance $1.1550, $1.1590/1.1600. Germany state

CPI's due this morning(Saxony usually first release around 0700GMT), with

pan-Germany flash CPI due at 1200GMT. Germany Employment Report at 0755GMT.

Attention into the afternoon to switch to US ADP 1215GMT and US GDP second read

at 1230GMT. Main focus remains on Italy and effect on peripheral yield spreads

for FX direction.