USD/TRY remained capped below Try7.00...>

EURO-DOLLAR: USD/TRY remained capped below Try7.00 through Asia which in turn

led to a calmer market feel. EUR/USD extended its recovery away from Monday's

low of $1.1365 to $1.1433 in NY before it slipped back to $1.1386 in the NY

afternoon. Rate recovered to close the day above $1.1400, opening Asia around

$1.1410. Rate drifted back to $1.1395 before Tokyo began covering cross JPY

shorts which allowed EUR/USD to edge to $1.1417 but fresh sales into Europe has

taken rate back to the $1.1400 level. Support $1.1395/86(Asia low/Hourly low

late NY) with stronger interest noted from Monday's base of $1.1365 through to

reported option linked demand into $1.1350. Resistance $1.1433 ahead of $1.1465.

Germany Q2 GDP provides the early focus(0600GMT), market median qq 0.4%(last

0.3%); yy 2.1%(2.3% last). Final Germany CPI released at same time. Germany ZEW

due at 0900GMT along with EU IP. Despite a calming in the TRY situation markets

remain wary.