USD weakened in early Asia as the Fed...>

EURO-DOLLAR: USD weakened in early Asia as the Fed cut rates a further 100bps,

with $700bln of asset purchases, with major central banks releasing co-ordinated

statements that they would utilise swap lines to aid liquidity strains due to

the COVID-19 spread. 

EUR/USD, which had touched an extended low of $1.1048, rallied sharply to

$1.1199. Failure to break above $1.1200 saw rate drop back to $1.1085 before it

climbed back to $1.1154 into Europe. Asian traders noted that apart from the

early flurry in interest main focus was on equity markets, taking the rate cut

news negatively. Markets continue to watch news on COVID-19 spread, with

Governments' action to try and contain, as well as counter market reactions. G-7

FinMins speak at 1400GMT. 

- Minor EZ data today. Focus on ECB Lagarde(dovish) and Panetta(dovish) at

1125GMT participate in Eurogroup meeting.

- US Empire State at 1230GMT, market median 5.0.

- Support $1.1085/80, $1.1048($1.1052 61.8% $1.0778-1.1495), $1.1000. Resistance

$1.1200, $1.1220/25.