Recovery stretched up to $1.2240 in.....>

EURO-DOLLAR: Recovery stretched up to $1.2240 in late Asia (NY high Jan12

$1.2218) as the Usd remained under pressure. Rate had seen an early Asian

session dip to $1.2188, sales of Eur/Jpy were cited for the move, with recovery

back above $1.2200 aided by reported North Asian demand. Early Europe were quick

to take advantage of the extended rally and sold back into the move, the rate

then easing back to $1.2208. Rate currently trades around $1.2215. Expect some

volatility in early Europe though market activity expected to calm down into the

afternoon with the absence of the NY market due to Martin Luther King Day.

North-South Korea talks boosted the Won with market watching for any

intervention. If this was the case any Eur/Usd dip could attract account

balancing demand from the BOK. Trader reports this morning have noted that

Eur/Usd demand seen driven by Real Money interest.

* Resistance $1.2250, $1.2273. Support $1.2208/00(61.8%-76.4% $1.2188-1.2240),

$1.2188.  

* Data: EZ Trade Balance 1000GMT.