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The USD recovery yesterday proved somewhat....>

FOREX
FOREX: The USD recovery yesterday proved somewhat briefer than expected and now
trades lower against EUR, CAD, GBP and AUD, but moderately stronger against JPY.
* Following the somewhat hawkish FOMC minutes, the USD rallied sharply. But a
failure to meaningfully challenge $1.20 in EUR/USD stemmed the greenback
strength which ebbed away overnight.
* After two market holidays, Japanese traders sold the JPY in response to firmer
equities (Nikkei 225 closed higher by 3.26%), pushing USD/JPY to test the year's
highs of Y112.78.
* Mixed Eurozone services PMIs (final) proved uninfluential as the EUR cemented
its recovery before being slowed by resistance at $1.2043 ahead of touted strong
offers at $1.2090 and a suggested barrier at $1.21.
* A softer USD helped lift cable and a move higher could expose hourly
resistance at $1.3570 as well as $1.3569, marking the 61.8% retracement level
($1.3614-$1.3495).
* US ADP Employment Change, Weekly Jobless claims and final US services PMI are
left on the docket.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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