The recovery off Asia traded lows ($1.1765)...>

FOREX: The recovery off Asia traded lows ($1.1765) extended into Europe, rate

squeezed to $1.1782 but with lack of follow through drifted. After pulling back

to $1.1770 Eur/Usd rallied higher reaching intra-day peaks of $1.1793 before

fading back to $1.1778. Usd/Jpy held to a narrow Y113.43-58 range as traders

reported of continued light volumes overnight as consolidation remained the

theme. On the downside support is seen at Y113.24/08 (Dec11, Dec8 lows). Aussie

staged a decent recovery off the low ($0.7519) despite the overnight release of

weaker-than-expected Australian home price and business confidence data. Minor

dollar sales into Europe extended the slow grind to $0.75 and the pair holds

firm at typing. Cable held firm ahead of UK CPI, squeezed to $1.3372 on the

stronger-than-expected release (3.1% Y/Y vs median 3.0%) with the main driver,

rising crude oil prices. The pair gave back nearly all of the earlier gains made

earlier dropping back to $1.3340 level. Eur/Gbp saw a sharp reversal off the

high (Gbp0.8837) extended to Gbp0.8805 after the release of stronger UK CPI, but

later climbed back to intra-day highs of Gbp 0.8845.