Recovery off Thursday's posted YTD......>

EURO-DOLLAR: Recovery off Thursday's posted YTD low of $1.0778 continued to meet

decent resistance around the $1.0820 level until the release of US PMI data

Friday, especially Services PMI, which was the lowest since 2013, provided the

impetus to take rate through. This release was in contrast to the earlier flash

releases in the EZ and UK which had shown improvements. EUR/USD rallied to

$1.0864, the move prompting suggestions of a USD correction, though this looks

to be premature. Rate eased to $1.0847 into the close. Rate marked lower in

early Asia, steadied around $1.0830 before reports Austria had stopped all train

traffic from Italy (2 suspected cases of COVID-19 on a train; Italy has now

reported the largest cluster of COVID-19 infection outside of Asia - 3 deaths)

dropped rate to $1.0811. Austria reversed ban and rate recovered to $1.0842 but

it struggled to maintain strength and drifted off to $1.0815 into Europe.

- Germany Ifo 0900GMT, medians Business Climate 95.1(prev 95.9), Current

Assessment 98.5, Expectations 91.6

- Support $1.0810/00, $1.0783/78, $1.0750, $1.0730. Resistance $1.0840/50,

$1.0864.