Sharp pullback from Tuesday's high of...>

EURO-DOLLAR: Sharp pullback from Tuesday's high of $1.1746 caught a market off

guard, expecting the reported strong USD sales to emerge at the month-end fixes.

Rate dropped to $1.1685 ahead of the close. USD correction suggested to have

been prompted on month-end flows, the short term market may have been attracted

in the hope of a break of $1.1750 to leave the speculated topside of the current

range of $1.1800 exposed, with some suggesting interest quickly changing to

today's FOMC. Asia kept the weight on, eventually squeezed the rate to an

extended low of $1.1676(50-dma) ahead of the Europe open. Rate currently trades

around $1.1679. Support remains at that $1.1676 level, $1.1669(61.8%

$1.1621-1.1746) ahead of the Jul30 low of $1.1648. Resistance $1.1694 and into

$1.1700. Traders aware that the $1.1670/85 area holds the strikes of E2.52bn

expiries for today's NY cut, which may act to keep rate anchored. $1.1600 expiry

E1.74bn. EZ Mfg PMI's begin with Spain at 0715GMT through to EZ at 0800GMT and

will provide focus this morning. US ADP at 1215GMT, ISM Mfg at 1400GMT ahead of

FOMC policy announcement at 1800GMT.