Corrective pullback from the Jan31......>

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.