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

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.