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US-China trade optimism Friday..........>

EURO-DOLLAR
MNI (London)
EURO-DOLLAR: US-China trade optimism Friday provided the USD with a lift as US
equities edged close to a record high and US 10Y yield also edged higher.
EUR/USD felt the weight of USD demand as it was pressed back below $1.1100,
breaking the recent low of $1.1093, to $1.1073. Rate held below $1.1100 through
to the close. Consolidation through Asia saw rate confined to a $1.1076/90 range
with demand into Europe achieving those highs. Weekend election in the German
state of Thuringia saw Merkel's CDU knocked into 3rd place by the right wing
AfD, though result was expected. Asian traders have suggested that resistance
expected to emerge around $1.1090, with further interest extending toward
$1.1100. Support below Friday's base seen coming in toward $1.1050. 
- Option expiry of note for today's NY cut seen at $1.1100 (E1.26bln, with
E486mln rolling off between $1.1085-90). 
- A light domestic data calendar. Highlight will be ECB Draghi speaking at
1500GMT.
- Wednesday sees Tiering coming into effect. Thursday FOMC, Friday US NFP.  
- Month end models suggest USD selling to be seen vs EUR and Gbp.    
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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