Volatile reaction to the FOMC...........>

EURO-DOLLAR: Volatile reaction to the FOMC announcement, the USD initially made

gains as equities eased and yields edged higher, which saw EUR/USD dip to

$1.1325 before it rallied through the recent high of $1.1384(Jun05 pre NFP)

moving on to to $1.1422 before momentum faltered. Rate dropped to $1.1362,

bounced to $1.1415 then dipped again to $1.1365 before it settled around $1.1375

into the close. Rate nudged to $1.1382 in early Asia, dipped back to $1.1364 on

early EUR/JPY sales but managed to overcome this early pressure as it recovered,

touched $1.1395 before momentum faded. General risk off then took charge, the

USD the main beneficiary (USD/JPY was confined to a Y106.90-107.23 range) which

acted to press EUR/USD back to its initial FOMC react low of $1.1325. Dip buyers

emerged into Europe and had edged rate back to $1.1340. Fed Powell comments on

recovery/growth timetable acted to weigh on equities/risk.

- US PPI and Weekly Jobless Claims data at 1330BST.

- Support $1.1325, $1.1310/00, $1.1284, $1.1241. Resistance $1.1395/1.1400,

$1.1422, $1.1430.