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Recovery off Thursday's low of..........>

EURO-DOLLAR
MNI (London)
EURO-DOLLAR: Recovery off Thursday's low of $1.2385 extended to $1.2522 in NY,
closed the day around $1.2505. The move seen as Jpy also weakened, the move up
in Usd/Jpy, and more so Eur/Jpy, seen as significant drivers via the continued
rise in UST yields. However, the enthusiasm for Eur/Usd faded in Asia, as rate
drifted off to $1.2487, and was holding below $1.2500 into Europe. Traders
report that GS have revised their global FX forecasts to account for the weaker
Usd, 'expecting the synchronized pickup in global growth to result in a soggy
Usd'. MS also see the current downside momentum in the Usd as 'strong', in their
weekly FX Pulse note, though add that 'Usd is above fair value and well away
from cyclical lows seen in previous periods'. US Employment Report at 1330GMT
main focus on day, AHE seen of more interest over NFP. Upcoming Italian
elections seen potentially providing a counter to Eur advance.
* Support $1.2485/75, $1.2450. Resistance $1.2516, ahead of recent $1.2537 high.
* Options expiries of note today, $1.2495-1.2500(E1.12bn)
* EZ PPI 1000GMT. ECB Coeure speaks in Slovenia 1000GMT. 
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com

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