Trading with a firm tone in early.......>

EURO-DOLLAR: Trading with a firm tone in early Europe as rate approaches the

$1.2400/05 area again. Rate recovered to $1.2405 in NY Tuesday, off its low of

$1.2314 with traders reporting that a lot of two way business was seen in the

$1.2400/05 area before rate drifted off to $1.2370 ahead of the close. Rate

recovered through most of Asia, though held shy of the $1.2400 level, edging to

$1.2398 in early European dealing. Traders have suggested that they see rate in

a tight $1.2370/1.2400 range, adding that a break of either side to provide next

directional impetus. A break of $1.2405 to expose Tuesday's high of $1.2434.

Below $1.2370 to expose reported real money demand sitting into $1.2340. Equity

market activity continues in focus for direction via risk.