EUR/USD has added 7 pips and last.......>

EURO-DOLLAR: EUR/USD has added 7 pips and last deals at $1.1258 after surging 43

pips yesterday. BBG ran headlines stating that the U.S. has opened a trade probe

over the French tax plan for large technology firms, after a BBG source story

suggested as much earlier in the day. The U.S. is using the "301 investigation,"

the same legal mechanism that was used before to impose tariffs on China.

- Bulls look to the 21-DMA at $1.1283, bears target the 50-DMA at $1.1241.

- A large beat in French industrial output data lent support to the rate in

yesterday's European morning, while subsequent release of also upbeat industrial

production numbers from Italy helped sustain the move.

- The main boost, however, was provided by Fed Chair Powell's congressional

testimony. Powell reinforced exp. of a rate cut from the Fed this month, as he

highlighted trade uncertainties, tepid global growth and a sub-target inflation

in the U.S. During the Q&A Powell downplayed the impact of solid jobs numbers on

the overall outlook and failed to rule out a 50bps cut.

- CPI data from across the EZ, ECB Jun MonPol meeting minutes and speeches from

ECB's Visco & Coeure are exp. today. EZ industrial output hits on Friday.