EUR/USD advanced over 50 pips...........>

EURO-DOLLAR: EUR/USD advanced over 50 pips yesterday and last sits at $1.1374, a

couple of pips higher on the day. 

- The pair was elevated to session highs Wednesday after RTRS reported that

Italian PM's new budget proposal sees a deficit goal of 2.04%, but does not

"betray Italians". Participants continue to watch developments re: domestic

budget in Italy, as well as France, whose gov't will face a no confidence vote

later today in a measure which forces officials to detail their spending plans.

The bid in cable on the back of the UK Tory party's leadership developments also

leant support Wednesday. 

- The rate trades a handful of pips shy of yesterday's highs at $1.1387 and

bulls look for a break above, which would open up the Dec 11 high/50-DMA at

$1.1400/05. Conversely, bears eye the 21-DMA at $1.1362, followed by the

$1.1315, where the pair bottomed yesterday. 

- The ECB is set to announce its MonPol decision later today. Elsewhere, EZ &

German mfg flash PMIs are due Friday, as well as a slew of ECB speakers.