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Retains Buoyant Tone, Though Off Recent Highs

EURO-DOLLAR
MNI (London)

Corrective pullback from Monday's high of $1.1781 met support around $1.1700
Tuesday (Europe low $1.1699, NY $1.1700), whilst recovery efforts were
capped above $1.1740. Rate closed Tuesday at $1.1716 but managed to edge
back to $1.1735 through Asia, holding firm into Europe. Expect
resistance from above $1.1740 to $1.1750 ahead of recent highs
at $1.1774/81(Tue/Mon highs). Month-end approaching Friday, early models
suggest USD sales to be seen at the fixes, but as today's value is for
month-end Friday we could see US corporate USD demand emerge
(been the case last 3-months). Main support seen into $1.1710/00.
FOMC MonPol announcement/press conference at 1900/1930BST, market
expecting ground work for the Sep meeting.

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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