EUR/USD benefitted from a move lower....>

EURO-DOLLAR: EUR/USD benefitted from a move lower in USD/CNH in early dealing

this week (which has subsequently faded), as the cross touched a high of

$1.1653, last ~$1.1630.

- From a technical perspective Friday's close above $1.1600 & the 50-DMA sets

the EUR/USD up nicely for a test of the $1.17 area and the holding pattern seen

across much of July. Bears keep focus on the $1.1500 area to shift momentum back

toward the YTD low ($1.1301). In terms of more immediate support and resistance,

bulls will look for a clean break of the Aug 02 high ($1.1668), while initial

support is noted at the 55-DMA ($1.1618).

- German IFO data provides the key point of interest today. With Italian

politics remaining at the forefront of traders' minds. It is worth noting that

Italy's Deputy PM Salvini has been formally placed under investigation for

possible illegal detention and kidnapping of migrants.

- Later this week, focus is set to fall on EZ CPI, comments from ECB's Praet &

De Guindos & Italy's sovereign rating review at Fitch.