Usd picked up demand in Asia............>

EURO-DOLLAR: Usd picked up demand in Asia following the CNY fix, the move

prompted by a lift in UST yields. Eur/Usd dipped under $1.2400, touched a low of

$1.2385 before recovering back above the figure, remaining buoyed above $1.2405

into Europe. Traders noted that the Eur proved more resilient than other

currencies to this boost in Usd strength, linking this to continued bullishness

following last week's ECB meeting/Draghi press conference and month end flows

which are expected to draw Eur/Usd demand. Having said that, technicals suggest

rate is open to a deeper corrective pullback though would need a break below

$1.2364 to 'confirm' (low following pullback from recent $1.2538 high, Jan25).

Data also suggests that market is long Eur's as we approach month end. EZ Flash

CPI also due on Jan31 as well as US FOMC Monetary Policy announcement(Yellen's

last meeting as Fed Governor, no change expected but may highlight the March

meeting for next hike). 

* Support $1.2385, $1.2364. Resistance $1.2440/50.

* Option expiries of note today, $1.2300(E638mn), $1.2400(E409mn),

$1.2465(E556mn). *Jan31 $1.2500(E3.46bn)