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Recovery off Tuesday's low of $1.2335...>

EURO-DOLLAR
MNI (London)
EURO-DOLLAR: Recovery off Tuesday's low of $1.2335 touched a high in NY of
$1.2454 before it drifted back to $1.2384 ahead of the close. Usd came under
pressure again in Asia, traders said to have reacted to Trump's State of the
Union Address as no mention of 'strong dollar' and little on trade. Rate
recovered to $1.2438 ahead of Europe, the new session taking over the baton to
take it on to $1.2450. Month-end models widely suggest Usd sales to be seen at
the today's fixes and expected to keep Eur/Usd buoyed. Also of note the large
option expiry at $1.2500 for today's NY cut, E3.62bn, which could act to attract
the rate higher with talk of linked offers placed at and above $1.2480. Support
seen back at $1.2400($1.2400/04 expiries E1.5bn).
* EZ Flash CPI provides main focus this morning, median CPI 1.2%yy, Core 1.0%yy.
* US ADP 1415GMT ahead of Friday's US NFP/AHE. 
* Fed Yellen's last FOMC 1900GMT. No change widely expected but pointers toward
a March hike in focus.  
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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