Touched a corrective pullback low of....>

EURO-DOLLAR: Touched a corrective pullback low of $1.1106 ahead of the NY open

Wednesday, with many analysts suggesting that move could be the initial signal

that the recent EUR recovery had come to an end. However, rate managed to

recover through the US session, traded to $1.1140 before it settled around

$1.1130 into the close. The recovery was seen taking its lead from cable, which

had edged higher on talk that the UK Govt was edging toward calling for a

general election (Conservatives seen leading in polls). EUR/USD extended the

recovery to $1.1142 in an otherwise subdued Asian session. Focus was seen on

this morning's release of flash PMI's from France, Germany and the EZ ahead of

ECB Draghi's last meeting (no new policy expected to be announced. More interest

in the internal divisions). US Weekly Jobless Claims, Durable Goods due at

1230GMT ahead of New Home Sales at 1400GMT.

- Support remains around $1.1130 ahead of $1.1110/00. Resistance $1.1142 ahead

of $1.1150/60. 

- Option expiries of note for today's NY cut include, $1.1100-10(E1.35bln),

$1.1120-50(E1.21bln), $1.1220-35(E1.15bln).