USD demand emerged in post fix trade,...>

EURO-DOLLAR: USD demand emerged in post fix trade, countering the strong pre fix

recovery which had seen rate extend its correction off pre-NY opening lows of

$1.1378 to $1.1442. Rate pared all of those gains, touching a fresh low of

$1.1371 before closing the day around $1.1385. Recovery extended to $1.1393 in

early Asia but basically consolidated within a range of $1.1378/94 through a

described subdued session. Focus Friday on the European Council's extraordinary

summit where the E750bln COVID-19 recovery plan will be discussed. Suggestions

that an agreement will be difficult to achieve, the frugal four (Netherlands,

Denmark, Sweden and Austria, with Finland also making concern noises), though

some suggest the sides are getting closer. Current fund plans are for two thirds

of the fund to be made as grants, one third as loans. 

- EZ final inflation data at 1000BST, not normally a market mover. US Housing

Starts, Building Permits due at 1330BST, 

UofM at 1500BST.   

- Support $1.1378/71, $1.1355/50, $1.1330/25, stronger into $1.1300. Resistance

$1.1394, $1.1415/25, $1.1442/52.