EUR/USD has added 5 pips and last.......>

EURO-DOLLAR: EUR/USD has added 5 pips and last deals at $1.1220.

- This comes after the rate closed 23 pips higher yesterday despite touching the

intraday low of $1.1174 in early European morning after a tranquil Asia-Pac

session for the EUR. However, it shook off initial weakness and spiked pre-WMR

fix, topping out at $1.1251 before retracing about half of the move into the

close.

- Traders reported that yesterday's jump was accompanied by a volume spike

(futures saw over 13,000 contracts change hands inside five minutes, equivalent

to E1.6bln), a break below the 50-DMA in S&P 500 for the first time since Dec

and a resulting squeeze on U.S. Tsy yields.

- Above the broken down trendline from Mar 4 2009/50-DMA at $1.1247/52 would

bring the 55-DMA/May 1 peak at $1.1263/65 into view. On the downside, focus

falls on the 200-HMA & 100-HMA at $1.1198.

- French and Italian industrial outputs, as well as Italian retail sales take EZ

focus today. ECB's Villeroy, Praet, Lautenschlaeger, Visco & Coeure will speak.