Tracked cable's stronger recovery.......>

EURO-DOLLAR: Tracked cable's stronger recovery rally Wednesday, the rate

managing to edge up from its opening NY low of $1.1652 to a high of $1.1710,

Asia taking this move on to $1.1714(76.4% $1.1733-1.1652) before momentum

faltered. Rate slowly drifted lower through the balance of the overnight

session, touched a low of $1.1686 in early Europe, as rate again took direction

from cable as this latter pair reacted to fresh EU Barnier comments. Both cable

and EUR/USD have pared losses, currently trades around $1.1694. Traders have

noted that EUR/USD has some sizeable option expiry interest for Friday(last day

of August), and suggested to keep rate confined within an outside range of

$1.1600 through to $1.1750/55. Early month-end model has suggested market will

see USD sales versus EUR, JPY and GBP. Germany state CPI data to be released

through the morning, pan-German CPI due at 1200GMT. Spain flash HICP due at

0700GMT alongside expected Saxony CPI release. Germ,any Employment at 0755GMT

ahead of EZ Economic Indicators at 0900GMT.