EUR/USD has edged lower in early........>

EURO-DOLLAR: EUR/USD has edged lower in early dealing, trading 15 pips worse off

at $1.1595, but now sits some 20 or so pips off of worst levels (pressure on

EUR/JPY pushed the cross to lows). Questions still surround the longevity of the

German gov't, although reports suggest that interior minister (and leader of

Merkel's coalition partner) Horst Seehofer has given the C'llr two more weeks to

come up with a solution for matters surrounding migration.

- Initial support is seen at $1.1541 (Low June 15), while resistance is seen at

$1.1627 (High June 15).

- MNI analysis shows that new EUR/USD shorts are in for a rough ride. The Fed

rate trajectory is almost fully baked-in, making USD less sensitive to hawkish

turns. Options markets and positioning point to limited EUR/USD downside.

Nonetheless, positioning & options markets were already structurally short EUR

pre-ECB, with the latter unwilling to gear for further downside, making any

further move lower in spot tough going.

- Focus on Monday will fall on a speech from ECB Pres. Draghi as he opens the

ECB's Sintra conference.