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Thursday's corrective pullback..........>

EURO-DOLLAR
MNI (London)
EURO-DOLLAR: Thursday's corrective pullback extended the move back from
Wednesday's FOMC react high of $1.1448 to a post 1600GMT fix low of $1.1343
before it recovered to $1.1377 into the close. Very slow start in Asia, as
markets awaited the return of Tokyo markets, following their Thursday holiday,
the rate holding within a tight range around $1.1375. Strong open on the Nikkei
took USD/JPY higher, the move influencing EUR/USD to trade down to $1.1361.
Correction lower in USD/JPY relieved the general USD demand and allowed EUR/USD
to slowly edge its way to $1.1381 ahead of the European open. Resistance remains
around the $1.1380 lwevel, a break and clear to expose next band of resistance
seen toward $1.1400. Of note, the $1.1400 level holds the strike of an expiring
option for today's NY cut for E2.29bn. A break of $1.1410 to expose $1.1430.
Stronger resistance remaining in place on any approach to $1.1450. Support
$1.1360, $1.1343/36.
- Flash PMI's for France, Germany and EZ in focus(0815GMT, 0830GMT, 0900GMT
respectively). 
- US PMI's due at 1345GMT, ahead of Existing Home Sales 1400GMT.  
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com

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