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Recovery off Monday's low of $1.1591....>

MNI (London)
EURO-DOLLAR: Recovery off Monday's low of $1.1591 extended to $1.1679 in Asia as
the USD came under general pressure generated by PBOC actions, verbal and
possibly physical via state banks, to stem the recent easing pressure on the
yuan. After touching the mentioned high the rate drifted back to $1.1660 ahead
of the European open only to meet fresh demand into the dip. Rate currently
trades around $1.1670. Markets expected to be thin, due to the US Independence
Day holiday, which could open the door to some early volatility. Markets would
be expected to quieten through the afternoon. EZ Services and Composite PMI data
set for release this morning(EZ flash forecast 55.0, 54.8). Resistance seen into
$1.1680, stronger from $1.1690 through to $1.1700, with interest suggested to be
linked to option. Asian traders have highlighted that almost E4bn of options
expire with this strike($1.1700) Thursday/Friday. Support $1.1655, $1.1635 ahead
of $1.1625/20. 
MNI London Bureau | +44 203-586-2231 |
MNI London Bureau | +44 203-586-2231 |

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