EUR/USD has slipped a dozen pips and....>

EURO-DOLLAR: EUR/USD has slipped a dozen pips and sits at $1.1068 as slightly

firmer U.S. Tsy yields have allowed USD to gain some poise. This comes after the

pair closed just 5 pips lower after fluctuating within a ~50 pip range.

- On the technical front, a break below the nearby $1.1064, where the rate

bottomed yesterday, would expose the Aug 1 cycle low of $1.1027. Bulls target

$1.1107, which registered the highs of Aug 20 & 21.

- The rate eased off a touch into the European morning yesterday, before

rallying to its intraday high of $1.1113 as flash PMIs in Germany, France & the

EZ proved better than expected (albeit the details were more questionable).

However, EUR/USD soon more then erased these gains, touching the intraday low.

Subsequent recovery was extended thanks to a worse than exp. Flash PMIs out of

the U.S., but this was countered by slightly hawkish remarks from Fed's Harker.

Having edged away from reaction lows, the rate traded sideways into the close.

- See https://emedia.marketnews.com/MNIItalyTimeline_Aug222018_.pdf for our

analysis of Italian political situation. Note that Pres Matarella extended the

deadline for party leaders to try and form a new ruling coalition until Tuesday.