Risk optimism Wednesday allowed.........>

EURO-DOLLAR: Risk optimism Wednesday allowed EUR/USD to extend its recent

recovery to $1.0999 before getting rejected back to $1.0971. However, rate

recovered during the US afternoon to $1.0992 before momentum faded and it

settled back at $1.0980 into the close. Early consolidation in Asia saw rate

contained within a tight range of $1.0977/82 before US-China tensions (as well

as Sino-Australia trade tensions), which have been bubbling away in the

background over the last few sessions, took prominence and acted to weigh back

on the recent positive risk outlook. Move lower was orderly, the rate meeting

initial support at $1.0957 before extending move to $1.0953 into the European

open. Apart from watching for developments in the US-China spat, and hoped for

COVID-19 vaccine, attention will be on flash PMI releases in France, Germany and

the EZ. Improvements in May expected due to an easing in lock-downs, the German

numbers seen in focus. US Initial Jobless Claims, Phila Fed, flash PMI's and

Existing Home Sales will provide the data interest into the afternoon.

- Support into $1.0950, $1.0938, a break exposes $1.0920. Resistance $1.0960-65,

$1.0980, $1.0990-1.1000, a break to expose the May1 high of $1.1018.