EUR continued to squeeze lower..........>

EURO-DOLLAR: EUR continued to squeeze lower Monday, traders noting concern over

EZ growth outlook, investor confidence along with coronavirus worries. Germany

Merkel's chosen successor Annegret Kramp-Karrenbauer announced she was stepping

down on concerns over the CDU relationship with far-right AfD. EUR lost ground

across the board, EUR/USD extending its YTD low to $1.0908 where it met decent

support, though recovery efforts have remained very shallow. Asia did manage to

edge rate to $1.0917 before momentum failed and rate brought pressure to bear on

the $1.0908 level again. Support here has drawn suggestions that demand is

option linked, barrier at $1.0900 mentioned but no confirmation heard. Expiries

for today noted between $1.0915/20 for E1.15bln, Wednesday between $1.0900-10

for E1.2bln. A break of $1.0900 to expose the Oct1 low at $1.0879. Resistance

$1.0920, $1.0938. 

- A light EZ data calendar, focus on ECB speakers. ECB Lagarde presents ECB

Annual Report at 1400GMT. ECB Schnabel at 1630GMT, ECB Lane at 1700GMT. US Fed

Daly speaks at 1100GMT, main focus on Fed Chair Powell at 1500GMT Before House

Financial Services Panel. Fed Quarles, Bullard and Kashkari also speak.