Recovered off Tuesday's low of..........>

EURO-DOLLAR: Recovered off Tuesday's low of $1.1104 as market reacted to the

release of headline US CPI, though move was capped at $1.1135 before it settled

back around $1.1125 at the close. Despite the slight miss analysts have

suggested this could be due to transitory factors, adding that year/year

inflation still accelerated, coming in at the fastest pace in over a year. Into

Asia and attention switched to today's signing of the US-China phase-one trade

agreement, though risk appetite was bruised by reports that the US is drafting a

rule to block more sales to Huawei, then soothed by comments from US Tsy Sec

Mnuchin that Trump administration may consider removing tariffs under phase-two

deal, though likelihood for this to be after this year's election and China's

compliance under phase-one. Trade through Asia was confined to a tight

$1.1126/37 range, holding firm within into Europe. No reports seen on EU trade

commissioner Hogan's trip to the US as he meets US trade rep Lighthizer. 

- Support $1.1105/00, $1.1085, $1.1070. Resistance $1.1145/50, $1.1168, stronger

$1.1180.

- Option expiries of note, $1.1000(E1.38bln), $1.1100-10(E1.09bln)