Dollar on the backfoot in early Europe........>

FOREX: Dollar on the backfoot in early Europe after a slow start

-A calendar light on economic data and impactful speeches (so far) has led FX

markets to largely drift and continue the trends seen at the tail-end of last

week. The EUR is marginally the strongest in a softer dollar environment with

GBP also looking tentatively positive. The moves coincide with trade

recommendations from Barclays, Morgan Stanley and Citi which all see a softer

greenback this week.

-NZD is the poorest performer so far, but the pair is yet to re-test last

Thursday's lows of $0.6903. A poor dairy auction (due at some point between

today and Wednesday) could see that level broken.

-The EUR has traded surprisingly resiliently considering the ongoing political

uncertainty in Italy, with reports suggesting that both the M5S and League

coalition partners have suggestions for a prime minister, but an agreement has

not been forthcoming.

-Today's calendar is dominated by CB speakers, with 5 different members of the

ECB and 2 Fed speakers due.