Early risk aversion in Asia faded and...>

EURO-DOLLAR: Early risk aversion in Asia faded and turned positive which allowed

EUR/USD to extend its recovery away from Friday's low of $1.1195 to $1.1288 into

NY, the move aided by suggested month-end demand for EUR/GBP along with reaction

to reports that the German Bundestag had concluded that the ECB has fulfilled

the requirement of the German Constitutional Court regarding proportionality

within its stimulus programme. Into NY and USD buyers emerged to change rate's

tack, talk that a major US bank has suggested strong EUR/USD sales to be seen at

month-end, based on DOW vs Dax performance, which flips earlier model

suggestions for mild USD sales. Better than expected Pending Home Sales said to

have overcome COVID-19 spread concerns also aided USD outlook, EUR/USD eased to

$1.1220 where it met support earlier in the day. 

- Tuesday month-end, awaiting final model calls on fix flow. Flash inflation

data due from France and EZ. ECB Schnabel speaks at 1200BST. EZ ILO report on

impact of COVID-19 on employment within the Zone.

- Support $1.1220/15, $1.1195/91, $1.1168. Resistance $1.1240, $1.1250/55,

$1.1288.