The Usd came under renewed pressure.....>

EURO-DOLLAR: The Usd came under renewed pressure in Asia, led by Usd/Jpy's break

below Y110.00, which in turn took Eur/Usd to a fresh 4-mth high of $1.2335 (DXY

broke under 90.00 to post fresh 3-yr lows). Move up however did meet some

headwind resistance from North Asian supply, suggested to be profit taking from

above $1.2300. Move above $1.2300 has traders on ECB source watch, recent moves

above this level have prompted ECB officials either direct, or via source

reports, providing a dovish counter ahead of Thursday's ECB monetary policy

statement. ECB officials unlikely to be quoted directly due to the upcoming ECB

announcement. Most expect no change but look for pointers directing attention to

the March meeting. Usd weakness expected to provide some buoyancy ahead of

Thursday ECB, but can also expect some paring back of long Eur's ahead of ECB.

* France, Germany and EZ flash PMI's due from 0800GMT. Strong reads generally

expected.

* Germany Merkel speaks at Davos 1330GMT.

* Support $1.2293, $1.2280/70. Resistance $1.2335, $1.2345/50($1.2350 barrier?)