EUR-USD rallied sharply in early Europe amid reports of Eastern European and Middle Eastern interest. A lot of emphasis has been put on today’s ECB 1-year tender, where it is rumoured that end users have bought Euro-denominated collateral to qualify for the tender. EUR-USD hit 1.4138 highs on the last leg higher and model fund interest was also mooted, although the pair lacked the momentum to challenge 1.4150, with options supply coming in from the 1.4130 area ahead of today’s 1.4150 expiries. Beyond 1.4150 there is technical support at 1.4180, which will be a potential target for European players ahead of the FOMC announcement. The dollar is expected to remain heavy in to the decision, although both momentum and liquidity may thin as we approach the N.Y. open. Elsewhere, the euro crosses are seeing some good flows, with EUR-JPY buoyed by investment trust demand and EUR-GBP boosted by mooted U.K. account interest ahead of the ECB tender.