EUR/USD extended its recovery Friday,...>

EURO-DOLLAR: EUR/USD extended its recovery Friday, off last Monday's low of

$1.1216, the rate able to edge on to $1.1420 where it was capped through the

balance of the session and into the close. USD pared some of its recent gains as

market reacted to cautious Fed speak, Fed vice Chair Clarida and Fed Harker

stated that the Bank is very much in data dependency mode amid evidence of

global economic slowdown. Market still has a hike in Dec as written in but

outlook for 2019 has been reined in. Risk has moved into favour as market still

optimistic that the end month Trump-Xi meeting will produce a break through in

trade negotiations, despite weekend APEC headlines. Comments from ECB Villeroy

overnight stated that "Euro area inflation outlook is firmer," and that the

ECB's net asset purchases will "very probably" come to an end in December, also

helped to buoy the EUR. Light data calendar for Monday, attention on Fri's EZ

PMI releases with trade likely to be fairly subdued due to Thu's major US

Thanksgiving holiday. Wed expected to see the first steps to discipline Italy

over its 2019 Budget. 

- Support $1.1380/70. Resistance $1.1421 ahead of $1.1435-50.