Release of stronger than forecast.......>

EURO-DOLLAR: Release of stronger than forecast Empire Index provided the added

weight to take EUR/USD through $1.0800 Tuesday, the move gathered momentum below

the figure before finding support around the base of its 1.0% 10-dma envelope at

$1.0786. Rate bounced back to $1.0826 ahead of the 1600GMT fix before sellers

again emerged to press rate down to $1.0790 into the close. Earlier release of

disappointing ZEW data, with implications for Germany IFO, kept the negative

weight on the EUR. Concern over EUR growth (China COVID-19 effects), dovish rate

outlook adding to carry plays already evident in downside pressure. Real money

have been noted sellers though so far short EUR positions not seen overly large

and could add further weight. Rate recovered in early Asia to $1.0804 before

momentum faded and rate drifted off to $1.0791 into Europe. However, buyers have

moved into the dip to edge rate back to $1.0797 at writing. Tuesday's break of

$1.0800 tripped an option barrier at the figure, talk of larger option interest

at $1.0775. Expiries of note for today $1.0780-85 E1.27bln of EUR puts. 

- ECB Current Account at 0900GMT, EZ Construction Output at 1000GMT. US PPI,

Housing Starts at 1330GMT.