Retreated sharply from its opening NY...>

EURO-DOLLAR: Retreated sharply from its opening NY high of $1.0885 to a low of

$1.0803 through the NY session, recovered to $1.0826 before closing the day

around $1.0823. Position adjustments were seen driving EUR/USD lower ahead of

today's Eurogroup meeting(market seem pessimistic for outcome) and expected poor

flash PMI's. Rate came under fresh pressure in early Asia, knocked back down to

$1.0805 where it again met support placed ahead of $1.0800. Rate bounced b to

$1.0822 but struggled to gain any meaningful escape momentum before it eased

again, this time finding decent support at $1.0808 which kept it buoyed. Rate

picked up fresh demand on the approach of Europe, traded to $1.0830 before

Europe took it on to $1.0835. Upside momentum was again seen fading but rate has

so far managed to hold recovery gains (albeit minor). Expect resistance between

$1.0840/44(NY hourly high/50% $1.0885-03) ahead of $1.0854(61.8%). Support

remains into $1.0800, a break to expose $1.0769(Apr06 low).

- Option expiry interest today, $1.0750(E1.2bln), $1.0790-00(E3.05bln),

$1.0810-20(E1.32bln), $1.0840-55(E2.54bln), 

$1.0865-75(E1.2bln), $1.0900-05(E2.3bln), $1.0950(E1.0bln).