The corrective pullback from............>

EURO-DOLLAR: The corrective pullback from Wednesday's Asian high of $1.1342

extended to $1.1260 into the NY close, with early Asia pressing it on to $1.1250

where it eventually found stronger support. Recovery picked up momentum into the

Tokyo open, the rate pushing on to $1.1284 before losing momentum. Pullbacks so

far have been held by $1.1274, the rate trading around $1.1277 into Europe.

Wednesday's EUR slippage was seen as EZ industrial output contracted faster than

exp. in December, while Spanish lawmakers rejected the ruling Socialist party's

budget plan, amidst speculation that PM Sanchez may call a snap election. For

today focus will turn to Germany(0700GMT) & EZ(1000GMT) GDP data. Germany GDP

median expectation 0.1%QQ. Market watching in case release produces a negative

reading which would put Germany into a technical recession. 

- EUR/USD support remains at $1.1250, stronger between $1.1215/00. Suggestions a

break of $1.1200 'could get messy'. Resistance $1.1284, $1.1300/05. $1.1300

holds the strike of an option expiry for today's NY cut, E$1.25bn.

- ECB Coeure & Angeloni are set to speak Friday.