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EUROPE SUMMARY: More Sterling Steepeners


Stocks Solid as S&P 500 Hits New Intraday High


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Midday Trade

EURO-DOLLAR: Corrective pullback from the Jan31 high of $1.1514 extended through
last week to a low of $1.1321 Friday with rate further extending this move to
$1.1315 in a fairly quiet Asian session this morning. Rate managed to recover to
$1.1328 only to drift back off to $1.1318 but was retesting the opening high of
$1.1330 area into Europe. The move to $1.1315 may have been a reaction to the
spike  in USD/CHF in early thin trade, but as this rate corrected back to where
it had started so EUR/USD edged off its lows. USD/CHF move was put down to a
'fat-finger' trade or a targeting of stops above Chf1.0070 in thin trade.
EUR/USD support $1.1315-1.1300, stronger $1.1290/80. Resistance $1.1350-60,
$1.1380, $1.1400-10.  
- Story in the FT that Italian coalition government in disagreement on
independence of the Bank of Italy.
- EZ focus this week turns to German & EZ GDP figures Thursday. ECB's Vice Pres
de Guindos & Knot speak later today; Lane, Weidmann & Lautenschlaeger speak
Tuesday. Lane will also appear Wednesday, while Coeure & Angeloni are set to
speak Friday.
MNI London Bureau | +44 203-586-2231 |