Sharp rally continued into early NY.....>

EURO-DOLLAR: Sharp rally continued into early NY Thursday taking EUR/USD to an

extended high of $1.1777 before momentum faded and it eased to $1.1739 post

London fix. Recovery through the NY afternoon saw rate rally back to

$1.1785before it settled below $1.1780 into the close. Consolidation in Asia had

rate confined to a tight range of $1.1775/87. Risk appetite remains to the fore

and seen weighing on the USD and JPY, this despite buoyant UST yields but with

bund yields also edging higher seen providing the underlying rive in EUR/USD's

rise. Tech traders have $1.1850 in their sights, supported by Thursday's close

above $1.1750, though others suggest that while they still see upside room in

this rate they haven't lost faith in the USD in the longer term. Maybe a rethink

if rate breaks $1.1855. Flash PMI releases in France, Germany and EZ in focus

this morning. Near term support seen at $1.1775 ahead of $1.1740. Resistance

$1.1785/95, break of $1.1800 to expose $1.1850.