Recovery off Wednesday's late low of....>

EURO-DOLLAR: Recovery off Wednesday's late low of $1.0865 faltered at $1.0889 in

European morning trade Thursday before sell pressure resumed. Rate was pressed

through support at $1.0865/64 to a low of $1.0834. Rate recovered to $1.0854

before it settled around $1.0840 into the close. USD demand into the Tokyo fix

lifted USD/JPY, the move placing further downside pressure on EUR/USD as it

extended lows to $1.0827. Rate settled between $1.0830/35 before it slowly

nudged toward $1.0840 into Europe.

- EZ growth concerns and carry plays continue to apply weight. 

- Germany Q4 GDP at 0700GMT ahead of EZ GDP at 1000GMT. EZ Employment and Trade

also due at 1000GMT. 

- US Retail Sales at 1330GMT, Cap.Ut. and IP at 1415GMT, Business Inventories

and UofM at 1500GMT.

- Support $1.0827, surrounded by option expiries between $1.0825-30 E490mln of

EUR puts. Break exposes $1.0810/00. 

- Resistance $1.0865/70, $1.0890/1.0900.