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Risk came under further pressure in.....>

EURO-DOLLAR
MNI (London)
EURO-DOLLAR: Risk came under further pressure in opening Asia trade as US
Treasury designated China as a currency manipulator. This announcement acted to
push USDCNH higher, dropped USD/JPY to an extended low of Y105.52 which in turn
edged EUR/USD up to $1.1250, after it triggered reported stops through $1.1240.
PBOC announced sale of Cny30bln of bills in HK, then fixed Cny at 6.9683 (after
rate had pushed above Cny7.00), which pressed USD/CNH lower and in the process
provided some relief for risk. USD/JPY, having met decent support into Y105.50,
bounced back, eventually pushing on to Y107.09 as shorts were squeezed. This
recovery pressed back on EUR/USD, marked a fresh intraday low of $1.1190 before
it settled back above $1.1200 into Europe. What has been referred to as a
Sino-US trade spat has now escalated, trade war being mentioned in many reports.
- Support $1.1190/85, $1.1165/60 ahead of $1.1150. Resistance $1.1250. 
- Germany Factory orders at 0600GMT provides early interest.     
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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