Recovery off Tuesday's low of $1.2222...>

EURO-DOLLAR: Recovery off Tuesday's low of $1.2222 stalled at $1.2255 before

rate drifted back to $1.2226 into the close. Early Asia kept mild pressure on,

extended pullback to $1.2221 then extended session low to $1.2215 ahead of the

European open. Rate recovered in early Europe to $1.2242 though momentum was not

too inspiring. Month-end and Usd demand expected to emerge at the fixes, though

some models only see a moderate signal for Eur/Usd sales. Large option expiries

noted from around $1.2350, $1.2346-50(E1.99bn), $1.2400(E923mn),

$1.2450(E1.22bn) which may act to try and keep rate anchored into the run off.

EZ flash CPI due at 1000GMT, market median 1.2%yy, core 1.0%yy. More interest in

the core reading, especially after Tuesday's release of below forecast Germany

inflation, though most expect headline and core CPI readings to come in at

forecast levels.  Eur/Usd resistance $1.2255/65, support $1.2215/05, stops on

break of $1.2200.