Strong US earnings reports cited........>

EURO-DOLLAR: Strong US earnings reports cited Tuesday for boosting the USD, the

demand saw EUR/USD pressed to a low of $1.1192 before it recovered through the

1600BST fix to $1.1228 into the close. Rate struggled to hold those gains in

early Asia and began to slowly drift lower, the move down to $1.1209 given an

added shove by the negative response in the AUD to the release of softer than

forecast Australian CPI data. Rate recovered to $1.1216 into Europe. Interesting

to note that the DXY made a show above resistance at 97.71 during Tuesday trade,

pushed on to 97.77 but holds back below 97.70 this morning. Support remains

between $1.1192-84, with $1.1187 again showing its significance (long term 61.8%

$1.0341-1.2555), a break below to expose the Mar07 YTD low of $1.1177.

Resistance $1.1228 ahead of $1.1261.

- Germany Ifo data at 0800GMT. Market to watch for any signs suggesting

recovery(median 99.9 vs 99.6 last)