EUR/USD has added a handful of pips.....>

EURO-DOLLAR: EUR/USD has added a handful of pips in early Asia-Pac trade and

last sits at $1.1366. This occurs after yesterday's 44 pip fall, mostly on the

back of broader dollar strength. Softer than exp. German factory orders also did

not help to tame losses, with the figure dropping 1.6% M/M vs. exp. of a 0.3%

increase, in what was the steepest fall in half a year. 

- Italy drew some attention yesterday, as the IMF said it "falls short of

comprehensive reforms" required to produce sustainable growth, with the EU

commission set to slash its forecasts for Italian GDP growth later today. 

- Initial support noted at yesterday's low of $1.1361. A breach of that level

would open up the Jan 4 low of $1.1346. Bulls need a return above the nearby up

trendline from the Nov 12 at $1.1370, breached yesterday, before challenging the

cloud base at $1.1383. 

- EZ focus turns to German industrial output due later today, ahead of France &

Italy's industrial output releases, due Friday. Elsewhere, Thursday will see the

releases of ECB's econ bulletin & EU Commission's econ forecasts, as well as

remarks from ECB's Mersch.