EUR/USD last sits at $1.1362, a touch...>

EURO-DOLLAR: EUR/USD last sits at $1.1362, a touch higher on the day, after

adding 23 pips yesterday, on the back of progress in U.S.-China trade talks & a

rally in Italian bonds, owing to Friday's affirmation of Italy's sovereign

credit rating by Fitch. Yesterday, Eurosystem sources told MNI that the Bank

could streamline its forward guidance to simply emphasise that interest rates

will remain unchanged for "as long as necessary" once it drops its reference to

"through the summer of 2019" at some point over the next few months. Elsewhere,

three sources told MNI that chances were rising of an announcement of a fresh

round of targeted longer-term refinancing operations as soon as March 7. Also

yesterday, sources informed MNI that top ECB officials are worried that the slow

EZ economic growth might be a "new normal," which is here to stay.

- Bulls initially look for a break above the down trendline from Sep 24 at

$1.1384. Bears eye the 21-DMA at $1.1358, ahead of the 100-HMA at $1.1345.

- EZ focus turns to French, German & Italian CPIs, as well as French GDP due

Thurs, and final PMI data from across the EZ due Fri. ECB's Lane, Mersch, Visco

& Coeure will speak later today, while Coeure & Weidmann will speak Weds.