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

EURO-DOLLAR: Recovery off Thursday's low of $1.2212 was capped at the earlier

European high of $1.2295 in NY before rate eased off to $1.2232, recovered to

$1.2273 ahead of the close. Rate marked a low in Asia of $1.2240 then slowly

edged higher, extending the move in early Europe to $1.2272. A break and clear

of $1.2273 to expose the stronger resistance area between $1.2295/1.2300. Asian

traders noted the strong bounce away from the Y108.50 level in Usd/Jpy, the move

above Y109.00 seen driven by strong Japanese buying which moved across to

Eur/Jpy, in turn provided some added buoyancy for Eur/Usd. Despite the sharp

sell off in Asian equity markets FX in general was fairly subdued. 

* Option expiries of note for today's NY cut, $1.2200(E1.22bn), $1.2300(E831mn)