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USD weakness through NY yesterday.......>

EURO-DOLLAR
EURO-DOLLAR: USD weakness through NY yesterday spilled over into Asia, EURUSD
squeezed to $1.1697 but failed to take out the reported resistance through
$1.1700 ($1.1698 - Aug1 high). Rate drifted as the USD improved to sit flat on
the session, before easing to fresh lows of $1.1663 on the Italy story that it
may breach its deficit limit owing to its income support tool. A break of the
$1.1700 level opens a move toward $1.1746/62 (Jul31 high, 100-dma). Near-term
support at $1.1646-34 (50%/61.8% $1.1595-1.1697). Quiet on the calendar today,
however with month-end approaching a reminder that Citi's rebalancing signals
point towards selling of USD and buying of EUR, GBP & JPY. EURUSD last $1.1670.

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