Return of US markets, which took........>

EURO-DOLLAR: Return of US markets, which took their cue from earlier Chinese

equity market gains, saw risk outlook gain another boost which in turn pressed

on the USD. The EUR, which had been gaining through the European morning, was at

last given the fuel to take EUR/USD through resistance in the $1.1300-03 area,

with reported triggered stops taking rate on to $1.1345 before momentum faded.

EUR strength was seen across the board, some noting that recent failure of

EUR/GBP to break back below Gbp0.9000 prompted some short covering which added

to the uplift. Corrective pullback gained pace into the 1600BST fix (other EUR

cross were also pressed lower through this event), took EUR/USD back to $1.1303,

the earlier resistance level now providing support, before rate settled around

$1.1310. Support remains into $1.1303/00, $1.1280, $1.1250/40. Resistance

$1.1345/49 ahead of technical interest between $1.1353/55. Traders earlier noted

that the 50-dma crossed through the 200-dma(golden cross) last week which was

seen adding to the underlying positive tone.