LONDON, Feb. 9 (MNI) - Speculation that ECB Trichet's early departure from a BIS meeting in Sydney was linked to plans for concrete action to sort out Greek debt concerns prompted strong euro-dollar demand in early Europe, the rate extending its recovery off Monday's late New York lows of $1.3644 to $1.3746.

However, late morning comments from an ECB spokesperson that early retrun was due to logistical reasons tempered the risk-on enthusiasm.

EURO SUMMARY: Opened in early Europe around $1.3723

seen as rate reacted to the late sell-off on Wall Street (Dow closed below 10,000 for the first time since November). Rate initially eased to retest that NY low, extending the base to $1.3643 before again meeting demand interest which provided early buoyancy. Rate recovered as talk swirled of good demand placed below $1.3620, the rate getting an added boost on reports of ECB Trichet's early departure from Sydney to attend Thursday's EU leaders' summit, though some suggested early departure could be linked to recent peripheral eurozone debt concerns. This, along with strong demand for yen crosses, took rate above $1.3700 and on to $1.3720. Upside pressure persisted into early Europe on Trichet speculation, rate extending to $1.3744 before meeting semi-official supply. Rate eased off, meeting demand around $1.3710 before retesting strength of resistance ahead of $1.3750 again, touching $1.3746 then slipped back to $1.3720/10.

EUROZONE: Reported comments from eurozone officials Tuesday, * ECB TRICHET: Left the BIS central bankers' meeting in Sydney a day early for EU leaders meeting Thursday, but early departure prompts unfounded speculation of a support package for Greece. * Late Europe morning an ECB spokesperson explains that early departure from Sydney due to logistical reasons * EIB CHIEF: EIB mission does not allow for bail-outs of deficits - EIB not allowed to provide balance/payment support - EIB will only finance economic viable projects * EU BARROSO: Greece situation would be tougher without euro - Need to reinforce economic coordination in EMU - EMU is going through a difficult period - Stability pact must be properly implemented - Solution requires above all action from Greece - EMU states must see policies impact on others - Media treatment of Greece amplifies difficulties - Need to see how can continue Lisbon reforms

EUROZONE: Data released in the eurozone Tuesday, * GERMANY: German harmonized inflation came to -0.6% on the month in January, resulting in an annual print of +0.8%, the Federal Statistical Office reported on Tuesday. - Germany Jan final HICP above all fcasts - Germany Jan CPI unrevised -0.6% M/M, +0.8% Y/Y, Dec +0.9% - Germany Jan final CPI matches MNI median fcast * GERMANY: The trade surplus in Germany declined to E16.7 billion in seasonally adjusted terms in the month to December, the Federal Statistical Office reported on Tuesday. * EUROPE: The Monster Employment European Recruitment Index fell a reported 7% to 93 points, in January.

YEN SUMMARY: Opened in early Europe around Y89.58 and Y122.74 -

session after the Y89.15 area provided good support again overnight (daily Ichimoku cloud line at Y89.02). The rally, however, has stalled at Y89.75 area for the time being and still remains firmly within the recent range. Traders say some talk in the market of lights stops around Y90.10 could be vulnerable if the market breaks out of the recent range high at Y89.89, which was posted after Friday's payroll data. - * Euro-yen has had a couple of decent rallies this morning, first to the Y123.05 area and then onto Y123.29 ahead of the Y123.30-35 resistance area. The cross-yen markets in general are performing well as rallying equity markets, and speculation of a plan to help Greek debt issues make risk trades a little more attractive.

JAPAN: Press pick-ups in Japan Tuesday, * JAPAN PRESS: Nearly 75% of respondents to the latest Yomiuri Shimbun survey said Democratic Party of Japan Secretary General Ichiro Ozawa should resign from his post following the indictment of three current and former aides. The same survey found the disapproval rating for Prime Minister Yukio Hatoyama's Cabinet had increased by five percentage points to 47%, surpassing the approval rating - 44% in this poll - for the first time since the Cabinet's inauguration in September. In the previous survey conducted Jan. 16 and 17, the approval rating was 45%.

- John Webb London bureau (44 207) 634 1628 jwebb@marketnews.com

Rates in London Trading TIME EURO-USD USD-YEN CABLE EURO-YEN EURO-STG 0600 GMT 1.3723 89.54 1.5639 122.80 0.8773 0700 GMT 1.3729 89.54 1.5643 122.94 0.8775 0800 GMT 1.3717 89.53 1.5584 122.82 0.8800 0900 GMT 1.3729 89.69 1.5584 123.14 0.8808 1000 GMT 1.3725 89.70 1.5581 123.18 0.8811 1100 GMT 1.3712 89.59 1.5575 122.84 0.8802