Volatile activity in NY trade...........>

EURO-DOLLAR: Volatile activity in NY trade Wednesday, with liquidity said to

have been thin and allowing for the whippy moves. EUR initially rallied to an

extended high of $1.1348 in early NY, as main trade appeared to be dictated by

Brexit news, with traders also highlighting technical moves after DXY failed in

its recent test on the 97.65-70 area. Rate reversed to a NY low of $1.1276,

bounced to $1.1345 as it tracked Cable's reaction to the UK Cabinet passing the

Brexit draft agreement before it settled into the close around $1.1310. Steady

recovery in Asia saw rate climb to a session high of $1.1342, eased to $1.1329

ahead of Europe. Fresh demand into the new session lifted rate to $1.1347 where

it again met headwind resistance ahead of $1.1350. Traders will watch to see if

any direction emerges around the 0800GMT fix. Traders note that today is a SOMA

day, reversal of some $17.4bn of QE operations which in the past tends to boost

the USD. EZ Trade data provides data interest, with ECB Praet and Coeure due to

speak. US Retail Sales seen main focus. Option expiries of note seen at

$1.1250-60(E1.78bn), $1.1300(E1.51bn) and $1.1395/1.1405(E2.69bn). Support

$1.1280/75, $1,1263. Resistance into $1.1350, stronger $1.1380/1.1400.